Henry Schein Lowers Earnings Guidance and Expects Sales Decline

Henry Schein, the provider of healthcare products for dental and medical offices, has revised its adjusted earnings guidance and expects sales to decline this year. This downward revision is a result of a cybersecurity incident that occurred in mid-October, causing disruptions to the company's operations.

Adjusted Earnings Expectations

The adjusted earnings guidance has been lowered from $5.18 to $5.35 per share to a new range of $4.43 to $4.71 per share. This adjustment accounts for the impact of the cybersecurity incident, which is estimated to have caused a hit of 55 to 75 cents per share due to business interruption.

Sales Expectations

Previously, Henry Schein anticipated a 1% to 3% growth in sales compared to the previous year. However, due to the cybersecurity incident and other softening macroeconomic conditions, the company now expects sales to decline by 1% to 3% instead.

Cybersecurity Incident

Henry Schein disclosed the cybersecurity incident in an October 16 filing with the Securities and Exchange Commission, two days after the incident was discovered. The incident primarily affected the company's dental and medical distribution businesses. Fortunately, containment measures were successful, and most business-critical systems have been restored.