Latest news with #HSIC
Yahoo
05-08-2025
- Business
- Yahoo
Henry Schein's 2025 Outlook Hinges On Strong Second-Half Execution
Henry Schein Inc. (NASDAQ:HSIC) stock is trading lower on Tuesday after the company reported its second-quarter earnings. The global healthcare solutions company reported adjusted earnings of $1.10 per share, down 10.6% year over year, missing the consensus of $1.20. Sales were $3.24 billion, beating the consensus of $3.22 billion. As reported, total net sales increased by 3.3%, reflecting 1.9% internal sales growth, 0.8% sales growth from acquisitions, and a 0.6% sales increase resulting from foreign currency Distribution and Value-Added Services sales for the quarter increased 2.9%, and by 2.4% in constant currencies compared with the second quarter of 2024. Total Global Distribution and Value-Added Services sales reached $2.73 billion, up from $2.65 billion a year ago. Henry Schein said Global Dental Distribution equipment sales for the quarter increased 3.0%, and by 1.6% in constant currencies. Sales growth was strong internationally and offset by lower sales in the U.S., resulting from a slowdown in orders beginning in May due to short-term economic uncertainty resulting from tariffs, which then returned to normal by the end of the quarter. Global Specialty Products sales for the quarter increased 4.2%, and by 3.3% to $386 million in constant currencies compared with the second quarter of 2024, reflecting continued growth in implant and biomaterial sales and endodontic consumables, offset partly by lower orthodontic sales. View more earnings on HSIC Global Technology sales for the quarter increased 7.4%, and by 6.6% in constant currencies to $167 million, reflecting strong sales growth in practice management systems, including Dentrix Ascend and Dentally cloud-based solutions, as well as in revenue cycle management products. 'Partnering with KKR Capstone, we have engaged two leading global management consulting firms to support our efforts to enhance distribution gross margins, including accelerating sales of our owned-products portfolio, and to support our ongoing company-wide initiatives to increase efficiencies. We expect these projects, which expand on our BOLD+1 strategy, to start producing results towards the beginning of 2026, and will support our ongoing initiatives to drive superior customer satisfaction and our financial goal of high-single digit to low-double digit earnings growth,' said Stanley Bergman, Chairman and CEO of Henry Schein. During the second quarter of 2025, the company recorded $23 million in restructuring costs and expects to achieve annual run-rate savings of over $100 million by the end of 2025. Outlook Henry Schein affirms fiscal 2025 adjusted earnings guidance of $4.80-$4.94 per share versus the consensus of $4.88. The company maintains 2025 sales guidance of $12.43 billion-$13.18 billion compared to the consensus of $12.96 billion. Adding a forward-looking perspective, investment firm William Blair said, 'Management also provided informal 2026 guidance for high-single- to low-double-digit EPS growth as the business stabilizes in 2025 and it starts to see some early benefits of its partnership with KKR and two other consulting firms. Consensus for 2026 currently calls for 8% EPS growth, so this is a welcome update, and we look for more concrete details on what these partnerships entail on the second-quarter call.' 'Overall, updates are mixed, and while we acknowledge management's execution on commercial/partner efforts, we expect second-half execution will be critical for durable valuation and share upside,' analyst Brandon Vazquez wrote in an investor note on Tuesday. Price Action: HSIC stock is trading lower by 8.80% to $64.37 at last check Tuesday. Read Next:Photo via Shutterstock Latest Ratings for HSIC Date Firm Action From To Feb 2022 Morgan Stanley Maintains Underweight Feb 2022 Credit Suisse Maintains Outperform Jan 2022 Morgan Stanley Initiates Coverage On Underweight View More Analyst Ratings for HSIC View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? HENRY SCHEIN (HSIC): Free Stock Analysis Report This article Henry Schein's 2025 Outlook Hinges On Strong Second-Half Execution originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
05-08-2025
- Business
- Yahoo
Henry Schein's (NASDAQ:HSIC) Q2 Earnings Results: Revenue In Line With Expectations
Dental and medical products company Henry Schein (NASDAQ:HSIC) met Wall Street's revenue expectations in Q2 CY2025, with sales up 3.3% year on year to $3.24 billion. Its non-GAAP profit of $1.10 per share was 7.6% below analysts' consensus estimates. Is now the time to buy Henry Schein? Find out in our full research report. Henry Schein (HSIC) Q2 CY2025 Highlights: Revenue: $3.24 billion vs analyst estimates of $3.23 billion (3.3% year-on-year growth, in line) Adjusted EPS: $1.10 vs analyst expectations of $1.19 (7.6% miss) Adjusted EBITDA: $256 million vs analyst estimates of $271.4 million (7.9% margin, 5.7% miss) Management reiterated its full-year Adjusted EPS guidance of $4.87 at the midpoint Operating Margin: 4.7%, in line with the same quarter last year Free Cash Flow Margin: 2.7%, down from 8.3% in the same quarter last year Organic Revenue rose 1.9% year on year (-2.4% in the same quarter last year) Market Capitalization: $8.52 billion 'We had good sales growth in our Global Distribution Group this quarter while experiencing lower margins in the U.S. versus the prior year primarily resulting from lower glove pricing as well as time-limited targeted sales initiatives. We are pleased with the results from these initiatives and have returned to normal levels of promotional activity. Our Specialty Products and Technology Groups continued to deliver strong results, driven primarily by sales from innovative products and solutions, and cost efficiencies,' said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. Company Overview With a vast inventory of over 300,000 products stocked in distribution centers spanning more than 5.3 million square feet worldwide, Henry Schein (NASDAQ:HSIC) is a global distributor of healthcare products and services primarily to dental practices, medical offices, and other healthcare facilities. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, Henry Schein's sales grew at a mediocre 6.6% compounded annual growth rate over the last five years. This was below our standard for the healthcare sector and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Henry Schein's recent performance shows its demand has slowed as its revenue was flat over the last two years. We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Henry Schein's organic revenue averaged 1.7% year-on-year declines. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results. This quarter, Henry Schein grew its revenue by 3.3% year on year, and its $3.24 billion of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 3.5% over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin Henry Schein was profitable over the last five years but held back by its large cost base. Its average operating margin of 5.7% was weak for a healthcare business. Looking at the trend in its profitability, Henry Schein's operating margin decreased by 1.8 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Henry Schein's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. This quarter, Henry Schein generated an operating margin profit margin of 4.7%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Henry Schein's EPS grew at a remarkable 10.6% compounded annual growth rate over the last five years, higher than its 6.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of Henry Schein's earnings can give us a better understanding of its performance. A five-year view shows that Henry Schein has repurchased its stock, shrinking its share count by 13.8%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. In Q2, Henry Schein reported adjusted EPS at $1.10, down from $1.23 in the same quarter last year. This print missed analysts' estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects Henry Schein's full-year EPS of $4.66 to grow 8.2%. Key Takeaways from Henry Schein's Q2 Results We struggled to find many positives in these results. Overall, this was a weaker quarter. The stock traded down 4.8% to $66.76 immediately after reporting. Henry Schein may have had a tough quarter, but does that actually create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
16-07-2025
- Business
- Yahoo
Henry Schein's Quarterly Earnings Preview: What You Need to Know
Melville, New York-based Henry Schein, Inc. (HSIC) provides healthcare products and services to office-based dental and medical practitioners, as well as alternative sites of care worldwide. With a market capitalization of $8.6 billion, the company operates through four segments: Global Distribution and Value-Added Services, Global Specialty Products, and Global Technology. HSIC is all geared up to report its Q2 2025 results on Tuesday, August 5. Before this event, analysts project that the company will report an adjusted EPS of $1.19, down 3.3% from $1.23 in the year-ago quarter. The company has surpassed or matched Wall Street's bottom-line estimates in each of the last four quarters, which is impressive. Dear Nvidia Stock Fans, Mark Your Calendars for July 16 Seeking Passive Income? This 'Strong Buy' Dividend Stock Yields 8.6%. How to Buy Tesla for a 13% Discount, or Achieve a 26% Annual Return Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For fiscal 2025, analysts expect HSIC to report an adjusted EPS of $4.86, representing a 2.5% year-over-year increase from $4.74 in fiscal 2024. Moreover, in fiscal 2026, the company's adjusted EPS is expected to increase 8.6% year-over-year to $5.28. HSIC stock has grown 7.3% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 10.9% gain but outperforming the Health Care Select Sector SPDR Fund's (XLV) 10.3% decline over the same time frame. HSIC stock rose 2% following the release of its Q1 2025 results on May 5. The company's net sales declined marginally year-over-year to $3.2 billion, missing the consensus estimate. Meanwhile, its adjusted EPS grew 4.5% from the prior-year quarter to $1.15, surpassing analysts' estimate by 3.6%. Analysts are moderately optimistic about HISC's stock, with an overall "Moderate Buy" rating. Among 14 analysts covering the stock, five recommend "Strong Buy," eight advise 'Hold,' and one suggests 'Strong Sell.' The mean price target of $77 indicates a 9% potential upside from HSIC's current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-07-2025
- Business
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Why Henry Schein (HSIC) Shares Are Falling Today
Shares of dental and medical products company Henry Schein (NASDAQ:HSIC) fell 3.5% in the afternoon session after an analyst at Baird downgraded the stock and cut its price target, citing the potential loss of a major customer. The investment firm lowered its rating on the healthcare products distributor to "Neutral" from "Outperform" and slashed its price target to $72 from $82. The downgrade was prompted by concerns that Heartland Dental, described as Henry Schein's largest global customer, might not renew its contract, which is estimated to be worth around $100 million annually. According to Baird, while the direct financial hit may be manageable, the move could set a precedent for other large customers to seek direct agreements with manufacturers. This possibility creates a potential "overhang" on the stock, which could weigh on its performance in the near to medium term. The negative sentiment was also reflected in the stock's technicals, as shares crossed below their 200-day moving average, a key technical indicator often watched by traders. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Henry Schein? Access our full analysis report here, it's free. Henry Schein's shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. Henry Schein is up 3.2% since the beginning of the year, but at $70.76 per share, it is still trading 13.6% below its 52-week high of $81.91 from February 2025. Investors who bought $1,000 worth of Henry Schein's shares 5 years ago would now be looking at an investment worth $1,185. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
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Henry Schein (HSIC) Announces Completion of $250 Million Investment by KKR
Henry Schein, Inc. (NASDAQ:HSIC) is one of the The company announced the completion of a $250 million strategic investment by funds affiliated with KKR, which is a leading global investment firm. Furthermore, William K. 'Dan' Daniel has officially joined Henry Schein, Inc. (NASDAQ:HSIC)'s Board of Directors as an independent director. He joined Max Lin, who became a member of the company's Board on May 2, 2025. As per Henry Schein, Inc. (NASDAQ:HSIC)'s Chief Executive Officer, deep experience of these appointments in health care, operations, and strategic growth is expected to be invaluable, with the company executing on its BOLD+1 strategy and creating long-term value. A close-up of a patient's mouth, the dental products from the company in view. Henry Schein, Inc. (NASDAQ:HSIC) continues to advance its BOLD+1 Strategic Plan, which was refreshed for 2025 to 2027, with the team focused towards growing distribution business via enhanced operational efficiency and improved customer experience, growing the dental and medical specialty businesses and corporate brand products as well as further developing the digital footprint and digital solutions. The company remains committed to its long-term financial goal of high single-digit to low double-digit earnings growth through successfully executing against the strategy. While we acknowledge the potential of HSIC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey.
