Henry Schein’s 2024 Profit Projection Misses Estimates due to Cyberattack
HSIC.O by Henry Schein lowered its adjusted profit estimate for 2024 compared with the figures released by Wall Street. The firm reported that the company cited ongoing repercussions of the cyber attack report which the company reported last October and this was one of the main factors affecting its outlook.
In the aftermath of the incident, the manufacturing and supply chain divisions of the organization were reinstated. Afterward, the company shut down certain systems, alongside engaging with law enforcement agencies and external experts to investigate the case.
Henry Shein CEO Aware of Low Sales
Besides, CEO Stanley Bergman (March 2024) certainly was aware of his coming merchandise sales being down given at the time of the engagement.
The LSEG is headquartered in New York and it forecasts lower earnings than the company’s original estimates. Namely, the figures expected for the year are between $5 .00 and $ 5.16 per share, with the mid point coming lower than the company’s original estimate of $ 5.10 per share.
We anticipate a quantified impact on our earnings for the current quarter of around 15 cents per share as of this cyber attack, with the first quarter of the year being the main area of impact.
On the eve of the news, the market disclosed that Henry Schein shares’ price had fallen by 3.2%. The company had a reported 10.4% decrease in sales over the last quarter that amounts to $3.02b, which is a decrease from the previous quarter.
The fact that the company had decreased its revenue by an approximate amount between $350 and $400 million was the biggest reason that this reduction was caused by the cybersecurity incident.
Besides of one-off things that were mentioned, the quarterly earnings of Henry Schein counted for 66 cents per share and missed an average guess of analysts that was 69 cents.
