Financial Performance & Guidance - Henry Schein reported FY2022 global net sales of $12.6 billion[8] - In Q1, GAAP diluted EPS was $0.91, and non-GAAP diluted EPS was $1.21[14] - Total sales growth was -3.8% (LCI -3.7%), but excluding PPE & COVID-19 Test Kits, LCI sales growth was strong at 6.3%[18] - EPS was negatively impacted by an estimated $0.24 due to lower contribution from PPE products and COVID-19 Test Kits, $0.04 from acquisition-related expenses, and $0.02 from foreign exchange[18] Henry Schein One & Dental Technology Market - Henry Schein One's 2022 revenue from dental practice management was approximately $550 million[20, 21] - The estimated dental technology market size is $2.3 billion, with an estimated market growth rate of 8-12%[26] - Henry Schein One has 100,000 active dental customers[26] Strategic Priorities & Market Trends - Henry Schein's strategic priorities include building complementary software, specialty, and services, operationalizing One Distribution, leveraging One Schein, and driving digital transformation[9] - Industry trends driving demand for Henry Schein One solutions include payment & claims innovation (72% of dentists are concerned with declining insurance reimbursement rates), AI & clinical decision support, customer dynamics (consumerization of healthcare), and dental practice consolidation[29, 30]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score emphasizes a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price changes and monthly earnings estimate changes to identify optimal buying times [5] VGM Score - The VGM Score combines the three Style Scores to highlight companies with the best value, growth forecasts, and momentum, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, aiding investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] Stock to Watch: Henry Schein Inc. - Henry Schein Inc. is a leading global distributor of healthcare products and services, operating in 33 countries and serving various healthcare practitioners [11] - Currently rated 3 (Hold) on the Zacks Rank, Henry Schein has a VGM Score of A and a Value Style Score of A, with a forward P/E ratio of 15.06, indicating attractive valuation metrics [11][12] - The company has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate increasing by $0.02 to $4.86 per share for fiscal 2025, and an average earnings surprise of 2.4% [12]

Company Overview - Henry Schein Inc. is a leading distributor of health care products and services globally, serving various practitioners including dental, medical, and animal health sectors, as well as government and institutional health care clinics [11] - The company operates in 33 countries [11] Investment Ratings - Henry Schein is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating a solid overall performance [11] - The Growth Style Score for HSIC is B, forecasting a year-over-year earnings growth of 2.5% for the current fiscal year [12] Earnings Estimates - In the last 60 days, five analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.02 to $4.86 per share [12] - HSIC has an average earnings surprise of 2.4%, suggesting a history of exceeding earnings expectations [12] Investment Potential - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Henry Schein is positioned as a potential top pick for growth investors [12]

Group 1 - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market over the next 30 days, based on three investment methodologies [2][3] Group 2 - Stocks are rated with an alphabetic system from A to F, where A indicates the highest potential for outperformance, and the Style Scores are categorized into Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] - The Value Score focuses on identifying undervalued stocks using various financial ratios, while the Growth Score emphasizes a company's financial health and future growth potential [3][4] - The Momentum Score assesses stocks based on price trends and earnings outlook, and the VGM Score combines all three styles to identify stocks with the best overall potential [5][6] Group 3 - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns, while stocks with lower ranks should be approached cautiously [9][10] Group 4 - Henry Schein Inc. is a leading global distributor of healthcare products and services, operating in 33 countries and serving various healthcare practitioners [11] - Currently rated 3 (Hold) by Zacks, Henry Schein has a VGM Score of A and a Growth Style Score of B, with a projected year-over-year earnings growth of 2.5% for the current fiscal year [11][12] - Recent upward revisions in earnings estimates and a solid earnings surprise average of 2.4% position Henry Schein as a potential growth investment [12]

Summary of Henry Schein Conference Call Company Overview - **Company**: Henry Schein - **Industry**: Medical Supplies and Devices - **Key Executives Present**: Stan Bergman (CEO), Ron South (CFO), Graham Stanley, Susan D'Onofrio (IR) Core Business Strategy - **BOLD Plus One Strategy**: - **B**: Build high growth, high margin businesses in specialty dental and medical products, targeting 50% of operating income from these by 2027 [4][5] - **O**: Optimize core distribution business for efficiency and customer satisfaction [5] - **L**: Leverage relationships with approximately 300 businesses to enhance sales across different product lines [6] - **D**: Digitalization of dentistry and medicine, including a new global e-commerce platform (GEP) [7][8] - **Plus One**: Advance relationships with suppliers, customers, and investors [9] Financial Performance - **Q1 Results**: Sales growth noted, with EPS growth excluding PPE impact [10][11] - **Earnings Growth Target**: High single digits to low double digits anticipated post-cyber incident recovery [11] Market Trends - **Dental Market**: Stable visit rates to dentists in the U.S., with a shift towards value in product selection [16][18] - **Equipment Stability**: Equipment sales stable, with some fluctuations; digital technology demand remains strong [18][21] - **International Markets**: Varying stability across Europe, with Brazil showing positive trends despite economic challenges [19][20] - **Software Demand**: Growth in software demand, transitioning to a SaaS model for recurring revenue [21][40] Long-term Financial Goals - **Earnings Growth**: Commitment to high single digit to low double digit growth, with 2026 guidance dependent on market momentum and restructuring initiatives [24][25] - **Cost Savings**: Expected $75 million to $100 million in cost savings from restructuring, leaning towards the higher end [25] Restructuring and Optimization - **Restructuring Focus**: Emphasis on optimizing endodontic business and leveraging synergies from acquisitions [28][29] - **Continuous Improvement**: Ongoing process to enhance efficiency and reduce costs, supported by KKR's investment [31] KKR Investment - **Strategic Partnership**: KKR holds approximately 15% stake, providing expertise in margin management and expense control [33][34] - **Negotiating Leverage**: KKR's portfolio may enhance negotiating power with suppliers [36] Capital Allocation Strategy - **M&A Activity**: Historical M&A spending of $300 million to $400 million annually, with a significant increase in 2023 [44] - **Share Repurchases**: $161 million in share repurchases in Q1, with a focus on maintaining a strong stock buyback strategy [46] Key Takeaways - **Misunderstood Aspects**: The effectiveness of the BOLD Plus strategy in driving growth and profitability through high-margin businesses and digital technology [48][49]

Company Overview - Henry Schein (HSIC) shares have increased by approximately 6.5% over the past month, outperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the catalysts affecting the stock [1] Earnings Estimates - Fresh estimates for Henry Schein have trended upward in the past month, indicating positive sentiment among analysts [2][4] - The stock has a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the upcoming months [4] VGM Scores - Henry Schein has a Growth Score of B and a Momentum Score of B, with an overall VGM Score of A, placing it in the top quintile for investment strategies [3] Industry Performance - Henry Schein is part of the Zacks Medical - Dental Supplies industry, where Becton Dickinson (BDX) has seen a 3.3% increase in the past month [5] - Becton Dickinson reported revenues of $5.27 billion for the last quarter, reflecting a year-over-year growth of 4.5% [5] - For the current quarter, Becton Dickinson is expected to report earnings of $3.45 per share, a decrease of 1.4% from the previous year [6]

Summary of Henry Schein (HSIC) 2025 Conference Call Company Overview - **Company**: Henry Schein, Inc. (HSIC) - **Date of Conference**: May 29, 2025 - **Key Speakers**: Ron South (CFO), Andrea Albertini (CEO, Global Distribution and Technology), Tom Popack (CEO, Henry Schein Products Groups) Key Industry Insights - **Market Recovery**: After a slow January attributed to weather, there was a notable recovery in February and March, with positive trends observed in both dental and medical sectors [2][5][7] - **Regulatory Uncertainty**: The introduction of tariffs and regulatory changes has created uncertainty in the market, affecting customer navigation and supplier dynamics [4] - **Dental and Medical Stability**: The dental market remains stable, while the medical sector saw an uptick due to a late flu season, leading to increased sales of diagnostic kits [5] Core Business Initiatives - **Specialty Products Sales**: The distribution sales force is now selling specialty products, particularly in the endodontic business, which has shown strong market share and momentum [9][10][13] - **Implant Market Growth**: The company is experiencing mid to high single-digit growth in the implant market in Europe, while the U.S. market remains relatively flat due to macroeconomic conditions [20][22] - **Global E-commerce Platform**: A new e-commerce platform was launched in the UK and Ireland, with plans for a broader rollout in the U.S. and Canada in 2026. This initiative aims to enhance customer experience and operational efficiency [25][31] Financial Performance and Projections - **Long-term Growth Goals**: The company aims for 8% to 11% EPS growth, contingent on achieving 6% to 8% top-line growth, which is currently challenged by lower market growth rates in core dental and medical sectors [34][35] - **Restructuring Savings**: A restructuring plan initiated last year is expected to yield annual savings of $75 million to $100 million, contributing positively to the cost base by the end of 2025 [37] - **Technology Segment Growth**: The technology segment is expected to return to high single-digit growth, driven by the transition from on-premise to SaaS models, despite current low single-digit growth rates [44][46] Market Challenges and Opportunities - **DSO Relationships**: The company emphasizes the importance of strategic partnerships with Dental Service Organizations (DSOs) to drive profitability rather than engaging in price competition [56][58] - **Medical Segment Growth**: The medical business is projected to achieve a CAGR of 4% to 7%, with home solutions contributing significantly to this growth [61][62] - **KKR Involvement**: KKR's investment is expected to enhance operational efficiency and revenue enhancement initiatives, although it is still in the early stages of collaboration [63][64] Additional Insights - **Equipment Orders**: There is optimism regarding equipment orders, although macroeconomic concerns may lead to delays in installations and revenue recognition [40][41] - **Customer Experience Focus**: The company is working on improving customer experience through loyalty programs and targeted promotions, particularly for online shoppers [30][28] This summary encapsulates the key points discussed during the Henry Schein conference call, highlighting the company's performance, strategic initiatives, and market outlook.

Core Insights - The article discusses the recent earnings call for Henry Schein, Inc (NASDAQ: HSIC), a healthcare distribution company, highlighting the author's perspective on investment strategies and market conditions [1]. Company Overview - Henry Schein, Inc is positioned in the healthcare distribution sector, focusing on building financial assets for investors nearing retirement [1]. Investment Strategies - The author emphasizes the importance of having both long-term and short-term trading strategies, aiming for proper execution of trading plans and achieving absolute investing results [1]. Market Conditions - The article reflects an interest in utilizing inverse ETFs to capitalize on market declines, indicating a proactive approach to market volatility [1].

Henry Schein (HSIC) 2025 Conference May 14, 2025 01:00 PM ET Speaker0 Welcome to day two of the BofA Healthcare Conference. My name is Alan Lutz. I run Healthcare Tech and Distribution here at BofA. We are very excited to welcome Henry Schein. We have CFO Ron South. Ron, thank you for joining us. Speaker1 Thank you, Al. Speaker0 I wanted to start talking about recent dental trends that you're seeing in the market. So if we go back to the call from, I believe, last week, talked about January, some weather re ...

Core Insights - Henry Schein reported $3.17 billion in revenue for Q1 2025, a slight year-over-year decline of 0.1% [1] - The EPS for the quarter was $1.15, up from $1.10 a year ago, indicating a positive trend in earnings [1] - The revenue fell short of the Zacks Consensus Estimate of $3.23 billion by 1.84%, while the EPS exceeded the consensus estimate of $1.11 by 3.60% [1] Revenue Performance - Geographic Revenue from International Dental Equipment was $197 million, below the average estimate of $209.20 million [4] - U.S. Distribution Revenue for Dental Equipment was $187 million, significantly lower than the estimated $232.79 million, reflecting a 25.4% decline year-over-year [4] - International Dental Merchandise revenue was $594 million, also below the estimate of $608.26 million [4] - U.S. Distribution Medical revenue was $1.03 billion, slightly above the estimate of $1.01 billion, showing a year-over-year increase of 1.6% [4] - International Dental revenue was $798 million, under the estimate of $824.47 million, with a year-over-year decline of 1.6% [4] - U.S. Distribution Dental Merchandise revenue was $591 million, exceeding the estimate of $569.68 million [4] - Global Specialty Products net sales were $367 million, slightly above the average estimate of $364.59 million [4] Stock Performance - Henry Schein's shares returned -0.3% over the past month, contrasting with the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]