Wall Street expects a year-over-year increase in earnings on higher revenues when Henry Schein (HSIC) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On th ...

It has been about a month since the last earnings report for Henry Schein (HSIC) . Shares have lost about 3.9% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Henry Schein due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It ...

Group 1 - The health care distributor Henry Schein (NASDAQ: HSIC) is viewed positively at its current price level, indicating a bullish outlook for the stock [1] - The analysis employs a technical approach focusing on price action, momentum, volume, and relative strength to support the bullish thesis for HSIC [1] - The article reflects the author's intent to build financial assets for retirement, highlighting a strategy that includes both long and short trading opportunities [1] Group 2 - The author expresses a commitment to developing winning trades and aims to learn from feedback in the comments section [1]

One very interesting company for investors to keep in mind is none other than Henry Schein (NASDAQ: HSIC ). For those not familiar the firm, it describes itself as a solutions company for professionals in the health care space. ManagementCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth ...

Henry Schein, Inc. (NASDAQ:HSIC) Q4 2024 Earnings Conference Call February 25, 2025 8:00 AM ET Company Participants Graham Stanley - Vice President of Investor Relations & Strategic Financial Project Officer Stanley Bergman - Chairman & Chief Executive Officer Ronald South - Senior Vice President & Chief Financial Officer Conference Call Participants Jason Bednar - Piper Sandler Jeffrey Johnson - Baird Allen Lutz - Bank of America John Stansel - JPMorgan Jonathan Block - Stifel Kevin Caliendo - UBS Brandon ...

User Base and Market Presence - The company has an active user base of approximately 100,000 practices and 321,000 consumers utilizing various software solutions as of December 28, 2024[41]. - The company aims to increase penetration of its existing customer base, which currently exceeds one million customers worldwide[50]. - The company develops and distributes a broad portfolio of dental implants and digital solutions, serving customers in approximately 90 countries[39]. Financial Performance and Sales - In 2024, dental merchandise accounted for 37.3% of consolidated net sales, while total dental products represented 52.7% of sales[45]. - The medical segment saw a slight increase in sales to 32.2% in 2024, compared to 31.7% in 2023[45]. - Seasonal fluctuations in sales are expected to continue, with higher sales typically occurring in the third and fourth quarters due to seasonal product demand[55]. - The company has experienced increased costs and shortages of purchased components, negatively impacting profit margins and sales[146]. - The company is exposed to risks associated with product liability and potential recalls related to corporate brand products, which could impact supplier relationships[157]. Strategic Initiatives and Growth Plans - The company is committed to enhancing its product offerings through organic investment and acquisitions to better serve customer needs[33]. - The company plans to pursue strategic acquisitions to expand its geographic footprint and access new products and technologies[50]. - The company aims to grow its specialty brands and technology solutions both organically and inorganically under the BOLD+1 Strategic Plan[147]. - The company has a strategic focus on expanding its Global Technology and Global Specialty Products segments[150]. Regulatory Compliance and Legal Risks - The DSCSA requires wholesalers and 3PLs to submit annual reports to the FDA, including information on each state where they are licensed[68]. - The UDI regulations mandate that labelers include unique device identifiers on medical device labels and packages, with compliance phased in starting from high-risk devices[69]. - The EU MDR significantly modifies regulatory compliance requirements for medical devices, including stricter clinical evaluation and quality system requirements[78]. - Compliance with legal requirements may necessitate delays in product release or voluntary recalls, potentially leading to financial losses and reputational harm[82]. - The company is subject to heightened enforcement activity regarding the storage, sale, and distribution of controlled substances under the Controlled Substances Act[71]. Employee Relations and Workforce Development - The company employs approximately 25,000 people, with 49% based in the United States and 51% outside the United States[121]. - Approximately 13% of the company's employees are subject to collective bargaining agreements, and the company believes its relations with employees are excellent[121]. - The company has rolled out a continuous listening program to gather feedback from employees, indicating a commitment to improving employee experience[123]. - The company has seen an increase in participation in professional development training programs, with employees reporting high utilization of skills learned[127]. - The company launched its seventh Employee Resource Group (ERG) in 2024, focusing on inclusivity and support for employees with disabilities[125]. Market Competition and Industry Trends - The health care products distribution industry is highly competitive, with significant competition from major manufacturers and distributors, which could adversely affect the company's margins and product availability[167]. - The company competes primarily on price, product breadth, e-commerce capabilities, and customer service in the North American market[27]. - The dental industry is expected to see increased expenditures as the population segment aged 45 and older grows, alongside rising demand for new technologies[51]. Cybersecurity and Operational Risks - The company experienced a cybersecurity incident in October 2023 that disrupted key business operations and adversely impacted financial results for Q4 2023 and the full year 2023[166]. - The incident led to significant remediation costs and has residual impacts on financial results in 2024[166]. - The company relies on information systems for critical operations, and any disruption or cybersecurity breach could lead to significant financial and operational impacts[164]. Economic and Market Conditions - Uncertain global and domestic macro-economic conditions may adversely affect the company's financial condition and operating results[172]. - The company has experienced inflationary pressures, including higher freight costs and interest expenses, impacting operational results[172]. - The health care industry is undergoing significant changes due to political, economic, and regulatory influences, which could materially affect the company's profitability[169]. Compliance with Privacy and Data Protection Laws - The company is subject to numerous evolving privacy laws, including GDPR, CCPA, and China's PIPL, which could impose significant compliance costs and penalties[195][196][197]. - Noncompliance with GDPR can result in penalties of up to EUR 20 million or 4% of global revenues, while China's PIPL carries maximum penalties of CNY 50 million or 5% of annual revenue[196][197]. - The CCPA, effective January 1, 2020, establishes new data privacy rights and statutory damages for violations, with the CPRA enhancing these requirements from January 1, 2023[199]. Financial Management and Risk Mitigation - The company maintains a strong balance sheet and diversifies investments to manage credit risks[380]. - The company engages in hedging programs using primarily foreign currency forward contracts to limit the impact of foreign currency exchange rate fluctuations on earnings[381]. - Disruptions in financial markets may adversely affect the availability and cost of credit, impacting the company's ability to make scheduled payments or refinance obligations[214].

Core Insights - Henry Schein, Inc. (HSIC) reported adjusted earnings per share (EPS) of $1.19 for Q4 2024, reflecting an 80.3% increase from the previous year's EPS of 66 cents, aligning with Zacks Consensus Estimate [1] - The company’s full-year 2024 EPS was $4.74, a 5.3% increase year-over-year, but it missed the Zacks Consensus Estimate by 0.2% [2] - HSIC's stock experienced a 1.4% decline in pre-market trading following the earnings announcement [2] Revenue Performance - HSIC reported net sales of $3.19 billion for Q4 2024, a 5.6% year-over-year increase, but fell short of the Zacks Consensus Estimate by 2.4% [3] - Full-year 2024 net sales reached $12.67 billion, up 2.7% from the prior year, yet also missed the Zacks Consensus Estimate by 0.8% [4] - Sales in the U.S. amounted to $1.86 billion, up 5.3% year-over-year, while international sales totaled $845 million, reflecting a 7.4% increase [3] Segment Analysis - The company restructured its reportable segments into three categories: Distribution and Value-Added Services, Specialty Products, and Technology [5] - Global Distribution and Value-Added Services sales were $2.70 billion, up 5.9% year-over-year [5] - Global Specialty Products revenues increased by 7.2% to $368 million, while Global Technology revenues rose by 2.4% to $160 million [6] Margin and Expenses - Gross profit for the quarter was $993 million, a 7.5% increase year-over-year, with gross margin expanding by 49 basis points to 31.1% despite a 5% rise in cost of sales [7] - Selling, General and Administrative (SG&A) expenses decreased by 8.6% to $738 million, leading to an adjusted operating profit of $255 million compared to $117 million in the previous year [7] - The adjusted operating margin improved by 411 basis points year-over-year to 8% [7] Liquidity and Cash Flow - At the end of 2024, HSIC had cash and cash equivalents of $122 million, down from $171 million at the end of 2023 [8] - Cumulative net cash from operating activities was $848 million, up from $500 million year-over-year [9] - The company repurchased approximately 1.1 million shares at an average price of $71.35, totaling around $75 million, with $380 million available for future repurchases [9] Future Guidance - For 2025, HSIC expects adjusted EPS to range from $4.80 to $4.94, indicating a growth of 1-4% from 2024 [10] - The company anticipates sales growth of nearly 2-4% compared to the previous year, with the Zacks Consensus Estimate for revenues at $13.19 billion [11] Strategic Initiatives - The implementation of the BOLD+1 Strategic Plan has led to growth and efficiency improvements within the company [12] - Under a new restructuring plan, HSIC aims for annual run-rate savings exceeding $80 million, contributing to a target of $75-$100 million in savings by the end of 2025 [13]

Core Insights - Henry Schein Inc. reported a fourth-quarter adjusted EPS of $1.19, an increase of 80.3% year-over-year, but missed the consensus estimate of $1.21 [1] - The company's sales reached $3.19 billion, reflecting a 5.8% increase, yet fell short of the consensus of $3.30 billion [1] - Internal sales growth was 5.5%, with contributions from acquisitions at 0.7% and a decrease of 0.4% due to foreign currency exchange; excluding PPE and COVID test kits, internal sales growth was 6.6% [1] Financial Performance - The fourth-quarter results indicate stable dental and medical end-markets, with progress on the 2022 to 2024 BOLD+1 Strategic Plan, exceeding the 2024 target of generating 40% of worldwide operating income from high-growth, high-margin businesses [2] - The company has restructured into three segments, but analysts find it challenging to assess which segments underperformed, with expectations of continued weakness in the dental segment [3] Future Outlook - Henry Schein forecasts adjusted EPS for 2025 to be between $4.80 and $4.94, below the consensus of $5.01, with anticipated sales growth of approximately 2%-4% over 2024 [3] - Analyst commentary suggests that the 2025 outlook is slightly below Wall Street expectations due to stable but weak market demand and investments in future growth initiatives, such as a new e-commerce site, which may temporarily affect profit margins [4] Segment Performance - The company reported sales of $10.8 billion in Global Distribution and Value-Added Services, $1.4 billion in Global Specialty Products, and $630 million in Global Technology [5]

Company Performance - Henry Schein reported quarterly earnings of $1.19 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.66 per share a year ago [1] - The company posted revenues of $3.19 billion for the quarter ended December 2024, which was 2.32% below the Zacks Consensus Estimate, but up from $3.02 billion year-over-year [2] - Over the last four quarters, Henry Schein has surpassed consensus EPS estimates three times, but has not beaten revenue estimates during the same period [2][3] Stock Outlook - Henry Schein shares have increased approximately 12.2% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $1.17 for the coming quarter and $5 for the current fiscal year [4][7] - The estimate revisions trend for Henry Schein is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Medical - Dental Supplies industry, to which Henry Schein belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Henry Schein's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Strategic Partnership - The strategic partnership agreement is established between Henry Schein, Inc. and KKR Hawaii Aggregator L.P. [1] - The agreement is dated as of January 29, 2025, indicating a future-oriented collaboration [2] - The strategic partnership may lead to enhanced market expansion opportunities for both entities involved [1] - The Company announced a strategic partnership with KKR, which includes a $100 million investment to support growth initiatives [7] Financial Structure and Compliance - The document outlines various sections including definitions, purchase and sale, and representations and warranties [3] - The capitalization section details the financial structure of the company, which is crucial for investment evaluation [3] - The agreement includes provisions for governmental approvals, ensuring compliance with regulatory requirements [3] - The investor's authority and non-contravention are addressed, highlighting the legitimacy of the investment [4] - The Company has filed all required reports with the SEC since December 31, 2022, ensuring compliance with the Securities Act and the Exchange Act [65] - The Company is in compliance with all applicable laws and holds all necessary licenses and permits for its business operations [70] - The Company is duly organized and validly existing under Delaware law, with all requisite corporate power to conduct its business [55] Financial Performance - The Company reported a revenue increase of 15% year-over-year, reaching $1.5 billion in the last quarter [4] - User data showed a growth of 20% in active users, totaling 10 million users by the end of the quarter [4] - The Company provided a future outlook, projecting a revenue growth of 10% for the next quarter, estimating $1.65 billion [4] - New product launches contributed to 30% of total revenue, with the latest product line achieving sales of $450 million [4] - The gross margin improved to 45%, up from 42% in the previous quarter, indicating better cost management [4] - The Company reported a revenue of $1.5 billion for Q4 2023, representing a 15% increase year-over-year [1] - User data showed a growth of 20% in active users, reaching 10 million by the end of the quarter [2] - The Company provided guidance for Q1 2024, expecting revenue between $1.6 billion and $1.7 billion, indicating a growth of 7% to 13% [3] Market Expansion and Innovation - The company is expanding its market presence in Asia, targeting a 30% increase in market share within the next year [4] - A strategic acquisition was announced, with the company acquiring a competitor for $200 million to enhance its product offerings [4] - Research and development expenses increased by 18%, reflecting the company's commitment to innovation and new technology [4] - The Company is investing $200 million in R&D for new technologies aimed at enhancing user experience [5] - Market expansion efforts have led to a 25% increase in sales in the Asia-Pacific region [6] - The Company plans to implement a new marketing strategy aimed at increasing brand awareness by 40% over the next six months [4] Operational Efficiency - The Company has set a target to reduce operational costs by 15% through efficiency improvements in the next fiscal year [4] - Operating expenses were reduced by 10%, totaling $300 million, through cost optimization strategies [10] - The Company is prohibited from issuing or granting any shares of capital stock or other equity interests without the Investor's consent during the period leading up to Closing [97] Governance and Board Structure - The Company plans to increase the size of the Board by two members, appointing Max Lin and Dan Daniel, with terms expiring at the 2025 Annual Meeting [125][126] - The Company will not establish any new committee that delegates substantial powers of the Board without at least one Investor Director being appointed [128] - The Board will include Investor Designees in the slate of nominees for election at the 2025 Annual Meeting, with efforts to ensure their election [130] - The Company agrees to indemnify Investor Directors and provide them with director and officer insurance on par with other Board members [136] - Investor Directors will receive reimbursement for reasonable out-of-pocket fees or expenses incurred in connection with their service [138] Legal and Regulatory Provisions - The execution and delivery of the Agreement and other Transaction Documents have been duly authorized by the Company's Board, ensuring legal compliance [61] - The Company has not been involved in any pending or threatened legal proceedings that would impair the Transactions [68] - The Company has taken necessary actions to ensure that the offering of Acquired Shares is exempt from registration under the Securities Act [73] - The Company is not required to be registered as an investment company under the Investment Company Act of 1940, ensuring operational flexibility [76] - The Company must cooperate with the Investor to obtain necessary governmental approvals and complete filings under the HSR Act by February 7, 2025 [100] Agreement Terms and Conditions - The Agreement may be amended only by written agreement of the parties involved [170] - Any termination of the Agreement will be effective upon delivery of written notice to the other party [167] - The Agreement constitutes the entire agreement and supersedes all prior agreements related to the subject matter [175] - The governing law for the Agreement is the State of Delaware [178] - The parties irrevocably submit to the exclusive jurisdiction of the Chancery Court of Delaware for any actions arising from the Agreement [179] - The Investor may assign rights and obligations under the Agreement to Investor Transferees [173] - The agreement includes provisions for specific enforcement to prevent breaches, emphasizing that monetary relief may not be adequate [180] - Each party waives the right to a jury trial, acknowledging the complexity of potential disputes [182] - All notices and communications must be in writing and are deemed received upon actual receipt if delivered before 5:00 p.m. local time [183] - The agreement remains in effect even if any provision is found invalid, with parties required to negotiate modifications in good faith [185] - Each party is responsible for its own costs and expenses related to the agreement and transactions, regardless of whether the closing occurs [186] - The agreement clarifies that the parties do not constitute a "group" under the Exchange Act, ensuring independent obligations [191] - The Investor Representative is authorized to act on behalf of the Investor Parties, binding them to decisions made [189] - The agreement allows for the appointment of a new Investor Representative if the current one resigns or is unable to fulfill responsibilities [190]