The 10-second takeaway
For the quarter ended March 31 (Q1), Henry Schein beat expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue improved and GAAP earnings per share expanded.
Gross margins expanded, operating margins improved, net margins dropped.
Henry Schein reported revenue of $2.10 billion. The 12 analysts polled by S&P Capital IQ expected to see sales of $2.03 billion on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $1.95 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.98. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.92 per share. GAAP EPS of $0.89 for Q1 were 8.5% higher than the prior-year quarter's $0.82 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.1%, 10 basis points better than the prior-year quarter. Operating margin was 6.9%, 50 basis points better than the prior-year quarter. Net margin was 3.8%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $1.10.
Next year's average estimate for revenue is $8.80 billion. The average EPS estimate is $4.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 94 members out of 103 rating the stock outperform, and nine members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Henry Schein a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Henry Schein is hold, with an average price target of $75.54.
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