NASDAQ$HSIC

Henry Schein Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported fourth quarter financial results from continuing operations, demonstrating sales growth and resilience amidst the COVID-19 pandemic.

Henry Schein reported a strong Q4 2020 with total net sales reaching $3.2 billion, an 18.6% increase year-over-year, driven primarily by PPE and COVID-19 related product sales. GAAP diluted EPS was $0.99, while non-GAAP diluted EPS was $1.00. The company's dental and medical segments showed growth, with medical experiencing a significant surge due to COVID-19 related demand.

  • Total net sales increased by 18.6% compared to Q4 2019, reaching $3.2 billion.
  • GAAP diluted EPS from continuing operations was $0.99, down from $2.25 in the prior year, which included a net gain on sale of equity investments.
  • Non-GAAP diluted EPS from continuing operations was $1.00, slightly up from $0.97 in the prior year.
  • Medical sales increased significantly due to demand for PPE and COVID-19 related products, while dental sales also showed growth.

Headline financials

Total Revenue

$3.17B

Previous: $2.67B+18.6%
EPS (adj)

$1.00

Previous: $0.97+3.1%
Net Income

$147M

Previous: $331M-55.4%
Operating Income

$181M

Previous: $196M-7.7%
Gross Profit

$860M

Previous: $811M+6.1%
Cash & Equivalents

$421M

Previous: $106M+297.0%
Total Assets

$7.77B

Previous: $7.15B+8.7%
Stock-Based Comp

$15.4M

Previous: $11.8M+30.7%

Revenue & EPS history

Henry Schein · Revenue · Quarterly

$3.17B

Q4 2020+18.6%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Henry Schein · $3.02B total across 2 segments · Q4 2020

  • Global Dental
    $1.85B+7.2%
  • Global Medical
    $1.17B+48.5%

Forward guidance

Henry Schein introduced guidance for 2021 non-GAAP diluted EPS from continuing operations, expecting it to be at or above the 2019 level of $3.51. The guidance assumes stable market conditions and consistent foreign exchange rates, not accounting for potential acquisitions, restructuring expenses, or share repurchases.

Tailwinds

  • Non-GAAP diluted EPS from continuing operations attributable to Henry Schein, Inc. is expected to be at or above 2019 non-GAAP diluted EPS from continuing operations of $3.51.
  • Guidance for 2021 non-GAAP diluted EPS attributable to Henry Schein, Inc. is for current continuing operations as well as completed or previously announced acquisitions.
  • Guidance does not include the impact of potential future acquisitions, if any, restructuring expenses or share repurchases.
  • Guidance also assumes foreign exchange rates that are generally consistent with current levels.
  • Guidance assumes that end markets remain stable and are consistent with current market conditions.

Headwinds

  • The Company is not providing guidance for 2021 GAAP diluted EPS from continuing operations as it is unable to provide an accurate estimate of expenses related to an ongoing restructuring initiative in 2021.
  • Guidance does not assume any material market changes associated with COVID-19.
  • Reconciliation to the Company’s projected 2021 diluted EPS from continuing operations prepared on a GAAP basis is not provided because the Company is unable to provide without unreasonable effort an estimate of costs related to an ongoing restructuring program.
  • The inability to provide these reconciliations is due to the uncertainty and inherent difficulty of predicting the occurrence, magnitude, financial impact, and the timing of related costs.
  • Management does not believe these items are representative of the Company’s underlying business performance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.4%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.6%

Avg return

30 days after

45%

31 / 69 earnings

Positive

+11.1%

Q4 2021

Best reaction

-8.5%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.3%-1.6%+4.6%
Q4 2025+5.8%+2.3%-8.5%
Q3 2025+10.9%+11.2%+13.5%
Q1 2025+2.0%+5.1%+7.8%
Q4 2024-2.3%-7.0%-10.6%
Q3 2024-3.2%-6.0%+0.2%
Q2 2024-5.4%-0.9%+0.4%
Q1 2024+6.2%+7.0%+0.1%
Q4 2023-5.1%-4.6%-6.3%
Q3 2023+7.5%+7.3%+15.5%
Q2 2023-2.8%-1.8%-5.1%
Q1 2023-4.5%-4.2%-6.1%
Q4 2022-6.2%-7.5%-12.8%
Q3 2022+1.8%+6.2%+21.2%
Q2 2022-4.9%-3.8%-7.3%
Q1 2022+7.4%+6.6%+5.6%
Q4 2021+11.1%+10.1%+14.5%
Q3 2021+3.0%+4.5%-6.7%
Q2 2021-4.8%-5.2%-2.3%
Q1 2021+6.6%+8.9%+5.3%
Q4 2020-8.5%-6.5%-5.3%
Q3 2020-5.0%-3.0%+4.6%
Q2 2020-5.3%-4.4%-6.9%
Q1 2020+0.4%+2.9%+20.6%
Q4 2019-8.4%-14.4%-38.9%
Q3 2019+4.4%+4.8%+5.2%
Q2 2019-3.2%-2.3%-4.2%
Q1 2019+8.6%+8.9%+8.6%
Q4 2018-5.0%-5.2%-5.2%
Q3 2018+3.1%+0.8%+3.3%
Q2 2018-0.5%-3.6%+0.5%
Q1 2018-6.1%-4.4%-6.7%
Q4 2017-1.2%-2.1%-5.2%
Q3 2017-8.5%-13.6%-13.0%
Q2 2017-7.7%-7.2%-4.9%
Q1 2017+0.6%+0.3%+5.2%
Q4 2016+2.7%+3.2%+2.0%
Q3 2016+4.6%+6.2%+1.7%
Q2 2016-7.1%-8.4%-8.6%
Q1 2016-2.5%
Q4 2015+7.0%
Q3 2015+1.1%
Q2 2015-1.9%
Q1 2015-0.4%
Q4 2014+0.9%
Q3 2014+5.4%
Q2 2014-1.8%
Q1 2014-1.7%
Q4 2013+0.1%
Q3 2013-2.6%
Q2 2013-0.3%
Q1 2013+2.1%
Q4 2012-2.2%
Q3 2012-0.6%
Q2 2012+1.8%
Q1 2012+2.4%
Q4 2011+3.4%
Q3 2011-6.4%
Q2 2011-2.3%
Q1 2010-2.0%
Q1 2011+0.5%
Q4 2010-3.9%
Q1 2009-3.9%
Q4 2008-3.9%
Q3 2009-4.1%
Q3 2010-4.1%
Q2 2010+2.1%
Q4 2009+2.1%
Q2 2009+2.1%

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