Henry Schein 3Q profit falls on costs
Medical device and services distributor Henry Schein Inc. said Thursday its third-quarter profit fell 9 percent on higher costs and a boost in tax expenses.
The company reported net income of $87.9 million, or 94 cents per share, for the three months ended Sept. 25, down from $96.4 million, or $1.05 per share, a year ago. Revenue rose 14 percent to $1.89 billion from $1.66 billion.
Analysts polled by Thomson Reuters expected earnings of 87 cents per share on $1.87 billion in revenue.
Henry Schein said its North American Dental sales rose 7.1 percent to $665.9 million in the quarter. North American Animal Health sales surged to $225.2 million with the addition of an animal health unit. Meanwhile, North American Medical sales rose12.6 percent to $391.9 million.
Meanwhile, the cost of sales rose 15 percent to $1.36 billion while operating expenses and income taxes rose.
Looking ahead, the company narrowed its 2010 earnings guidance to between $3.50 and $3.56 per share from prior guidance of $3.46 to $3.56 per share. Analysts expect earnings of $3.53 per share. Also, the company said it expects profit in 2011 between $3.88 and $3.98 per share, while analysts expect $3.93 per share.
Its shares fell $2.31, or 3.9 percent, to $56.31 in morning trading.