Henry Schein 3Q profit rises on tax benefit

Henry Schein 3Q profit boosted by tax gain but misses estimates; co. narrows 2009 forecast

• On 11:32 am EST, Wednesday November 4, 2009

MELVILLE, N.Y. (AP) -- Medical and dental device maker Henry Schein Inc. said Wednesday its profit surged 43 percent in the third quarter due to a tax benefit and a slight improvement in sales.

The company reported net income of $96.4 million, or $1.05 per share. But excluding an overseas tax benefit, the company earned only 80 cents per share. In last year's third quarter, Henry Schein posted a profit of $67.5 million, or 74 cents per share.

Revenue increased 1 percent to $1.66 billion from $1.64 billion.

According to Thomson Reuters, analysts expected a profit of 82 cents per share and revenue of $1.64 billion.

Henry Schein said dental group sales fell 3 percent to $622 million due to a decline in equipment sales and service revenue. Medical group revenue slid 4 percent to $411 million, as lower sales of seasonal flu vaccines more than offset strong sales of consumable products. International revenue rose 9 percent to $584 million.

Henry Schein narrowed its 2009 profit forecast to a range of $3.14 to $3.16 per share from an earlier estimate of $3.11 to $3.26 per share. Analysts project income of $3.23 per share.

For the fourth quarter, Henry Schein predicts income of 89 cents to 91 cents per share. Analysts forecast income of 82 cents per share.

For 2010, Henry Schein forecast a profit of $3.40 to $3.56 per share. Analysts expect profit of $3.56 per share.

Shares of Henry Schein fell $2.27, or 4.2 percent, to $51.79 in morning trading. The stock has ranged from $32.08 to $56.92 over the past year.

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