Henry Schein Cuts 2017 Profit View

(RTTNews) - Henry Schein Inc. (HSIC) said that it adjusted its 2017 full year earnings per share guidance range to reflect growth of approximately 12% on a GAAP basis, versus the comparable 2016 results. This reflects growth of 8% to 9% on a non-GAAP basis, which excludes litigation settlement expenses and a fourth quarter loss associated with Henry Schein's divestiture of its equity ownership in E4D Technologies, versus the comparable 2016 results.

The company also introduced 2018 earnings per share guidance that reflects growth of 11% to 14% compared with the midpoint of the Company's 2017 GAAP guidance range and 7% to 10% compared with the midpoint of the Company's 2017 non-GAAP guidance range.

"During 2018 and beyond, we expect to continue to make progress with our focus on increasing sales of higher-margin products, as well as improving operating efficiencies to achieve long-term EPS growth," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein.

2017 GAAP earnings per share attributable to Henry Schein, Inc., which includes litigation settlement expenses, is expected to be $3.46 to $3.48. This guidance reflects growth of approximately 12% compared with 2016 GAAP EPS of $3.10. The prior 2017 GAAP EPS guidance range was $3.57 to $3.63.

2017 non-GAAP EPS, which excludes litigation settlement expenses and a fourth quarter loss associated with Henry Schein's divestiture of its equity ownership in E4D Technologies, is expected to be $3.59 to $3.61. This guidance reflects growth of 8% to 9% compared with 2016 non-GAAP EPS of $3.31, which excluded restructuring charges of $0.21 per share. The prior 2017 non-GAAP diluted EPS guidance range was $3.59 to $3.65.

Analysts polled by Thomson Reuters expect the company to report earnings of $3.64 per share for fiscal year 2017. Analysts' estimates typically exclude special items.

The Company notes that fiscal year 2017 includes one less week than fiscal year 2016. Guidance for 2017 GAAP and non-GAAP diluted EPS is for current continuing operations as well as completed or previously announced acquisitions, and does not include the impact of potential future acquisitions, if any. Guidance also assumes foreign exchange rates that are generally consistent with current levels.

2018 EPS attributable to Henry Schein, Inc. is expected to be $3.85 to $3.96. This guidance reflects growth of 11% to 14% compared with the midpoint of the Company's 2017 GAAP guidance range and growth of 7% to 10% compared with the midpoint of the Company's 2017 non-GAAP guidance range.

Wall Street currently is looking for fiscal year 2018 earnings of $4.01 per share