November 4, 2009 / 12:06 PM / 10 years ago

RPT-UPDATE 2-Henry Schein Q3 lags estimates, narrows profit view

(Repeats without any changes to text)

* Q3 adj EPS of 80 cents miss est by 2 cents

* Q3 hurt by supply glitches in seasonal flu vaccines

* Sees some growth in market going forward

* Tightens ‘09 profit view range

* Shares fall 6 pct in premarket trade (Adds CFO comments, details; updates stock movement)

By Esha Dey

BANGALORE, Nov 4 (Reuters) - Medical products supplier Henry Schein Inc (HSIC.O) posted a lower-than-expected quarterly profit as supply issues with flu vaccines led to weak sales and dentists stayed cautious about buying new equipment, but the company said it sees better growth in 2010.

The company, which narrowed its 2009 earnings view range, said it expects 2010 sales and profit to accelerate from 2009 levels.

“The worst is really behind us as far as impact of the recession in our market is concerned,” Chief Financial Officer Steven Paladino told Reuters.

“We think the markets have stabilized and we will begin to see some growth in the market going forward,” Paladino added.

For 2010, the company expects earnings of $3.40 to $3.56 a share, representing a growth of 8 percent to 13 percent compared with the midpoint of its 2009 outlook, the company said. Analysts on an average expect earnings of $3.56 a share.

For the third-quarter, the company posted a net income of $96.4 million, or $1.05 a share. Excluding special items, the company earned 80 cents a share, missing analysts’ estimates by 2 cents.

Net sales for the quarter rose around 1 percent to $1.66 billion. Analysts were expecting revenue of $1.64 billion, according to Thomson Reuters I/B/E/S. [ID:nWNAB9731]

Medical group sales, which included the sales of seasonal influenza vaccines, fell 3.1 percent.

“It really was a supply issue... Our supply of flu vaccine was reduced by one of our key manufacturers, they had low production yields of flu vaccine,” CFO Paladino told Reuters.

The CFO said that he expects the supply issues to be resolved before the next flu season, adding that the season is over for this year.

“We are pretty much finished selling flu vaccines for this season. We expect to get a greater supply next season,” he added.

Dental group sales declined 3 percent for the quarter as dentists were still wary of the broad economic conditions and refrained from new equipment purchases, Paladino said.

For 2009, the company lowered the upper-end of its outlook range and now expects to earn $3.14 to $3.16 a share, excluding unusual items, compared with its prior view of $3.11 to $3.26 a share.

Shares of the company were down 6 percent to $50.85 in premarket trade. They closed at $54.06 Tuesday on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Aradhana Aravindan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below