The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Henry Schein beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved.
Gross margins shrank, operating margins were steady, net margins dropped.
Henry Schein tallied revenue of $2.34 billion. The 12 analysts polled by S&P Capital IQ expected sales of $2.22 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $2.02 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 $1.15. The 16 earnings estimates compiled by S&P Capital IQ anticipated $1.12 per share. GAAP EPS of $1.15 for Q4 were 15% higher than the prior-year quarter's $1.00 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 27.9%, 50 basis points worse than the prior-year quarter. Operating margin was 7.0%, about the same as the prior-year quarter. Net margin was 4.5%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.04 billion. On the bottom line, the average EPS estimate is $0.91.
Next year's average estimate for revenue is $8.78 billion. The average EPS estimate is $4.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 92 members out of 100 rating the stock outperform, and eight 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 gives 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 $71.82.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.