Impact of Acquisition Costs and Cyber Attack
Henry Schein Inc.’s stock (HSIC, +0.89%) took a hit of 3% on Tuesday morning following lower-than-expected fourth-quarter earnings. The provider of dental and medical supplies reported net income of $18 million or 13 cents per share, a decline from $47 million or 34 cents per share in the previous year.
Shortfall in Earnings
Adjusted earnings per share stood at 66 cents, falling short of the 70-cent FactSet consensus. Sales also saw a decrease, dropping to $3.017 billion from $3.371 billion in the prior year and missing the $3.037 billion FactSet consensus.
Impact of Cybersecurity Incident
The profit number included 5 cents in acquisition costs and a significant impact ranging from 70 to 75 cents due to a cybersecurity incident that occurred in 2023. The cyber attack affected a portion of the company’s manufacturing and distribution businesses on October 14.
Future Outlook
Looking ahead to 2024, CEO Stanley M. Bergman acknowledged the short-term residual impact on sales but expressed confidence in strengthening the company’s market position. The company anticipates adjusted EPS for 2024 to range between $5.00 and $5.16, slightly below the $5.10 expected by FactSet.
Stock Performance
Despite the recent decline, Henry Schein’s stock had shown a modest gain of 2.8% over the past year, while the broader S&P 500 index surged by 27%.