NEW YORK - Henry Schein Inc. (NASDAQ:HSIC) reported second-quarter earnings that slightly beat expectations but revenue fell short, as the dental and medical products distributor lowered its full-year guidance amid a slower-than-expected recovery from a cyber incident.
HSIC shares were trading marginally higher in Tuesday's premarket session, up 0.4%.
The company posted adjusted earnings per share of $1.23, edging past analyst estimates of $1.22. However, revenue of $3.14 billion missed the consensus forecast of $3.27 billion.
Henry Schein cut its 2024 earnings outlook, now expecting full-year EPS of $4.70 to $4.82, down from its prior guidance of $5.00 to $5.16 and below analyst projections of $5.05. The company also reduced its 2024 sales growth forecast to 4-6%, compared to previous guidance of 8-10%.
CEO Stanley Bergman said the company delivered "solid" Q2 results with strong operating cash flow, but noted the pace of recovery in distribution businesses since last year's cyber incident has been slower than anticipated. He cited the "challenging economic environment in certain markets" as a factor in the lowered outlook.
The company said it remains committed to its long-term financial goals through its strategic plan, supported by a new restructuring initiative targeting $75-$100 million in annual savings.
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