Henry Schein stock showing strength despite Q3 hurdles
Henry Schein (HSIC) shares are rising Monday afternoon, despite the company reporting third-quarter revenues that fell below expectations. The healthcare products and services provider has faced headwinds in recent months, including a cyber attack, but is starting to recover.
Yahoo Finance's Julie Hyman and Josh Lipton break down all the details.
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Video Transcript
JULIE HYMAN: When you look at the turnaround that we saw in the shares today, right now they're up by 6%. And it's true if you look at the $1.32 earnings per share here, that was below or at least in line with what some analysts were expecting. One of the analysts who was expecting a little bit less from the company was Stifel's Jonathan Block.
Who did come out with an outperformer or a buy rating on the stock, saying that the multi-year headwinds on the company are abating. One of the things that's been affecting Henry Schein, there was a big cyber attack on the company. Block says he feels like they are starting to come out of the other side on that.
JOSH LIPTON: Yeah. So I mean, you did see this reversal today. It was down now up. Q3 earnings in line, sales missed, lower 2023 guidance. But I think in part here too you can hear the company executives and the way they were talking about the quarter when they talked about things like despite macro economic conditions, despite that cybersecurity incident, they said we have confidence in the stability of the dental and medical markets.
Of course, investors like to appreciate that word very much, stability. And that note from Stifel as you noted too, they think that cybersecurity impact may prove transitory past structural headwinds. They say looking in the rearview mirror in the business transformation, they told their clients to higher margin products continues.
JULIE HYMAN: Yeah. And also, the perspective is the stock's down this year as we've been showing, so a bounce on the back of that.
