Core Insights - Henry Schein Inc. reported mixed financial results for the first quarter, with adjusted EPS of $1.15, a 4.5% increase year over year, surpassing the consensus estimate of $1.11. However, sales of $3.17 billion fell short of the consensus of $3.23 billion [1] - The company affirmed its 2025 adjusted EPS guidance of $4.80-$4.94, slightly above the consensus of $4.86, and anticipates sales growth of approximately 2%-4% over 2024, projecting sales between $12.43 billion and $13.18 billion, compared to a consensus of $13 billion [2] - Henry Schein expects its 2025 adjusted EBITDA to grow in the mid-single digits compared to 2024, with guidance assuming stable foreign currency exchange rates and no new tariffs [3] Analyst Ratings - Barrington Research analyst Michael Petusky maintained an Outperform rating on Henry Schein but reduced the price target from $90 to $86 [8] - Wells Fargo analyst Vik Chopra also maintained an Equal-Weight rating while lowering the price target from $80 to $75 [8]

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]

Core Viewpoint - Henry Schein, Inc. (HSIC) reported adjusted earnings per share (EPS) of $1.15 for Q1 2025, reflecting a 4.5% increase year-over-year and exceeding the Zacks Consensus Estimate by 3.6% [1][12] Financial Performance - The company recorded a GAAP EPS of 88 cents, up from 72 cents in the same quarter last year [2] - Q1 revenues were $3.17 billion, a slight decline of 0.1% year-over-year, and fell short of the Zacks Consensus Estimate by 1.8% [3] - Constant currency total net sales increased by 1.4%, while excluding PPE and COVID-19 test kits, sales growth was 2% year-over-year [3] Segment Analysis - Global Distribution and Value-Added Services segment sales decreased by 0.7% to $2.68 billion, with a 0.8% increase in constant currencies [4] - Global Dental Distribution merchandise sales rose by 0.4% in constant currencies, while equipment sales fell by 2.4% due to sales deferrals [5] - Global Medical Distribution sales increased by 3% in constant currencies, driven by higher patient traffic and growth from acquisitions [5] - Global Specialty Products segment sales totaled $367 million, up 2% on a reported basis [6] - Global Technology segment sales reached $162 million, reflecting a 2.9% increase on a reported basis [7] Margin and Liquidity - Gross profit for the quarter was $1.00 billion, a 1.2% decrease year-over-year, with gross margin contracting to 31.6% [8] - SG&A expenses decreased by 6.7% to $738 million, while adjusted operating profit rose by 18.6% to $262 million [8] - The company ended Q1 2025 with cash and cash equivalents of $127 million, up from $122 million at the end of Q4 2024 [9] Share Repurchase and Guidance - HSIC repurchased approximately 2.3 million shares at an average price of $71.58, totaling around $161 million, with $718 million available for future repurchases [10] - The company maintained its adjusted EPS forecast for 2025 in the range of $4.80-$4.94, indicating 1-4% growth from 2024 [11] Strategic Outlook - HSIC is advancing its BOLD+1 Strategic Plan for 2025 to 2027, focusing on operational efficiency, enhancing customer experience, and expanding its digital solutions [13]

Financial Data and Key Metrics Changes - Global sales for the first quarter of 2025 were $3.2 billion, down 0.1% compared to the first quarter of 2024, with a 1.5% decrease attributed to foreign currency exchange and a 1.2% growth from acquisitions [27][28] - GAAP operating margin improved by 81 basis points to 5.53%, while non-GAAP operating margin increased by 14 basis points to 7.25% [28] - GAAP net income for the first quarter was $110 million or $0.88 per diluted share, compared to $93 million or $0.72 per diluted share in the prior year [28] - Non-GAAP net income was $143 million or $1.15 per diluted share, compared to $143 million or $1.10 per diluted share in the prior year [29] Business Line Data and Key Metrics Changes - U.S. Dental merchandise sales grew low single digits, while U.S. Dental equipment sales declined by 8.9% due to a deferral of approximately $20 million in sales from Q4 2023 to Q1 2024 [30][31] - U.S. Medical distribution sales grew by 4.7% after excluding PPE products and COVID test kits, with Home Solutions business experiencing a total sales growth of 23% [32] - Global Specialty Products Group saw constant currency sales growth of 4.3%, benefiting from acquisition growth primarily from TriMed [33] Market Data and Key Metrics Changes - International Dental merchandise constant currency sales grew by 1.1%, while international Dental equipment constant currency sales grew by 4.3%, driven by strong growth in Canada and Central Europe [32][33] - The U.S. implant market was slightly down in Q1 2025, with strong sales growth in the DACH region and Latin America [20][21] Company Strategy and Development Direction - The company is advancing its Bold Plus One strategic plan, focusing on growing the distribution business, enhancing customer experience, and developing digital solutions [10][11] - The establishment of two main business units: Global Distribution and Value Added Service Group, and Global Technology Group, is aimed at improving operational efficiency [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business, noting good sales performance in February and March following a slow January due to weather-related events [8][10] - The company expects to achieve high single-digit to low double-digit earnings growth by executing its strategic plan [10] Other Important Information - The company repurchased approximately 2.3 million shares of common stock during the first quarter at an average price of $71.58 per share, totaling $161 million [35] - The company is maintaining its 2025 financial guidance, expecting non-GAAP diluted EPS to be in the range of $4.80 to $4.94 [38] Q&A Session All Questions and Answers Question: Can you talk about the dollar's impact on revenue guidance? - The company experienced a headwind of about 1.5% from foreign exchange in Q1, but expects foreign exchange to be largely neutral for the remainder of the year [44][45] Question: Can you provide clarity on the operating environment and April's performance? - April was a decent month, with stable traffic for Dental distribution businesses and increased patient traffic for medical sales [47][50] Question: Are there any adjustments to your guidance inputs? - The sales guidance remains consistent, with most growth expected to be internally generated [55] Question: Can you comment on the tariff impacts? - The company is confident in mitigating the financial impact of tariffs through various strategies, including sourcing from lower tariff countries [56][58] Question: How is the dental capital equipment environment? - There has been healthy demand for equipment orders, with no significant adverse reactions noted [108] Question: What is the current sentiment among DSOs? - DSOs are stable to leaning positively, with many adjusting to higher interest rates and continuing to invest in expansion [115]

Group 1: Earnings Performance - Henry Schein reported quarterly earnings of $1.15 per share, exceeding the Zacks Consensus Estimate of $1.11 per share, and showing an increase from $1.10 per share a year ago, representing an earnings surprise of 3.60% [1] - The company posted revenues of $3.17 billion for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 1.84%, remaining unchanged from year-ago revenues [2] Group 2: Stock Performance and Outlook - Henry Schein shares have declined approximately 5.6% since the beginning of the year, compared to a decline of 3.3% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.18 on revenues of $3.22 billion, and for the current fiscal year, it is $4.82 on revenues of $12.99 billion [7] Group 3: Industry Context - The Medical - Dental Supplies industry, to which Henry Schein belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Data and Key Metrics Changes - Global sales for the first quarter of 2025 were $3.2 billion, down 0.1% compared to the first quarter of 2024, with a 1.5% decrease due to foreign currency exchange and a 1.2% growth from acquisitions [26][27] - GAAP operating margin improved by 81 basis points to 5.53%, while non-GAAP operating margin increased by 14 basis points to 7.25% [27] - GAAP net income for the first quarter was $110 million or $0.88 per diluted share, compared to $93 million or $0.72 per diluted share in the prior year [27] - Non-GAAP net income was $143 million or $1.15 per diluted share, compared to $143 million or $1.10 per diluted share in the prior year [28] Business Line Data and Key Metrics Changes - U.S. Dental merchandise sales grew low single digits, while U.S. Dental equipment sales declined 8.9% due to a deferral of approximately $20 million in sales from Q4 2023 to Q1 2024 [30][31] - U.S. Medical distribution sales grew by 4.7% after excluding PPE products and COVID test kits, with Home Solutions business experiencing a total sales growth of 23% [31][32] - Global Specialty Products Group saw constant currency sales growth of 4.3%, with strong growth in the DACH region and Latin America [32][33] Market Data and Key Metrics Changes - International Dental merchandise sales grew 1.1% in constant currency, while international Dental equipment sales grew 4.3% driven by strong growth in Canada and Central Europe [32] - The U.S. implant market was slightly down, but the company maintained market share and saw strong sales growth in Europe, particularly in Germany [21][33] Company Strategy and Development Direction - The company is advancing its Bold plus One strategic plan, focusing on operational efficiency, enhancing customer experience, and growing its digital footprint [9][10] - The establishment of two main business units, the Global Distribution and Value Added Service Group and the Global Technology Group, aims to streamline operations and improve performance [9][10] - The company expects high single-digit to low double-digit earnings growth by executing its strategic initiatives [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business despite a slow start in January due to weather-related events, with sales performance improving in February and March [6][8] - The overall mood in the dental and medical markets is stable, with increased patient traffic and investment in practices [50][62] - Management acknowledged the potential impact of tariffs but believes current actions will mitigate financial effects [24][58] Other Important Information - The company repurchased approximately 2.3 million shares at an average price of $71.58 per share, totaling $161 million [34] - The company maintains its 2025 financial guidance, expecting non-GAAP diluted EPS in the range of $4.80 to $4.94 [38] Q&A Session Summary Question: Can you talk about the dollar's impact on revenue guidance? - The company experienced a 1.5% headwind from foreign exchange in Q1, but expects foreign exchange to be neutral for the remainder of the year [44][45] Question: What is the current environment in April? - April showed decent performance, with stable traffic in dental distribution and solid growth in medical sales due to increased patient visits [47][50] Question: Are there any adjustments to guidance inputs? - The company maintains its sales guidance, expecting growth to be largely internally generated with foreign exchange being neutral [56] Question: How is the company managing tariff impacts? - The company is diversifying sourcing to mitigate tariff impacts and is working closely with suppliers and customers [58][59] Question: What is the current state of the dental capital equipment market? - Demand for dental equipment remains healthy, with no significant declines in orders observed [109]

Financial Performance - The company reported total sales of $3.168 billion in Q1 2025, a decrease of 0.1% compared to $3.172 billion in Q1 2024 [17, 56] - Non-GAAP diluted EPS increased by 4.5% from $1.10 in Q1 2024 to $1.15 in Q1 2025 [14, 56] - Adjusted EBITDA grew by 1.7% from $255 million in Q1 2024 to $259 million in Q1 2025 [14, 17, 59] - The company is maintaining its 2025 guidance, including Non-GAAP EPS of $4.80 to $4.94 and total sales growth of +2% to +4% [10, 50] Segment Performance - Global Distribution and Value-Added Services Group sales grew by 1.5% excluding PPE and COVID test kits [14, 24] - Global Specialty Products Group sales increased by 4.3% due to gains in implants and biomaterials [14, 27, 28] - Global Technology Group sales grew by 3.4%, driven by practice management systems [14, 33, 35] Strategic Initiatives - The company is advancing its BOLD+1 Strategic Plan, expecting high-growth, high-margin businesses to contribute over 50% of total operating income by 2027, plus over 10% from corporate brand products [10] - The company invested $31 million in capital expenditures and $51 million in acquisitions in Q1 2025 [41] - $161 million was used for share repurchases in Q1, with $718 million remaining under the share repurchase authorization [41]

Financial Performance - First-quarter 2025 GAAP diluted EPS was $0.88, a growth of 22% compared to Q1 2024[6] - First-quarter 2025 non-GAAP diluted EPS was $1.15, reflecting a growth of 4.5% compared to Q1 2024[6] - Total net sales for Q1 2025 were $3.2 billion, with constant currency sales growth of 1.4% compared to Q1 2024[7] - Global Medical Distribution sales increased by 3.0% in constant currencies compared to Q1 2024, with as-reported sales up by 2.9%[12] - Global Specialty Products sales grew by 4.3% in constant currencies compared to Q1 2024, with as-reported sales increasing by 2.0%[12] - Net sales for Q1 2025 were $3,168 million, a slight decrease of 0.1% compared to $3,172 million in Q1 2024[32] - Gross profit for Q1 2025 was $1,000 million, down from $1,012 million in Q1 2024, reflecting a gross margin of 31.5%[32] - Operating income increased to $175 million in Q1 2025, compared to $150 million in Q1 2024, representing a growth of 16.7%[32] - Net income attributable to Henry Schein, Inc. rose to $110 million in Q1 2025, up from $93 million in Q1 2024, marking an increase of 18.3%[32] - Basic earnings per share increased to $0.89 in Q1 2025, compared to $0.72 in Q1 2024, reflecting a growth of 23.6%[32] - Net income attributable to Henry Schein, Inc. for Q1 2025 was $110 million, representing a 17.7% increase from $93 million in Q1 2024[42] - Diluted EPS attributable to Henry Schein, Inc. increased by 22.2% to $0.88 in Q1 2025, up from $0.72 in Q1 2024[42] - Non-GAAP net income attributable to Henry Schein, Inc. remained stable at $143 million, with a slight increase of 0.5% compared to Q1 2024[42] - Non-GAAP diluted EPS attributable to Henry Schein, Inc. rose by 4.5% to $1.15 in Q1 2025, compared to $1.10 in Q1 2024[42] Shareholder Actions - The company repurchased $161 million of common stock, approximately 2.3 million shares, during Q1 2025[10] Guidance and Strategic Plans - The company maintained its 2025 non-GAAP diluted EPS guidance of $4.80 to $4.94, reflecting growth of 1% to 4% compared to 2024[19] - The company is focused on enhancing operational efficiency and customer experience as part of its refreshed BOLD+1 Strategic Plan for 2025 to 2027[4] Restructuring and Costs - The company recorded $25 million in restructuring costs in Q1 2025, aiming for annual savings of $75 million to $100 million by the end of 2025[9] - Restructuring costs for Q1 2025 were reported at $25 million pre-tax, up from $10 million in Q1 2024, with net restructuring costs of $17 million[43] - Acquisition intangible amortization for Q1 2025 was $43 million pre-tax, slightly down from $46 million in Q1 2024, with net amortization of $27 million[44] - Costs associated with shareholder advisory matters amounted to $8 million in Q1 2025[45] Cash Flow and Assets - Total current assets increased to $4,037 million as of March 29, 2025, compared to $3,983 million at the end of 2024[34] - Total assets grew to $10,480 million as of March 29, 2025, up from $10,218 million at the end of 2024[34] - Cash and cash equivalents at the end of Q1 2025 were $127 million, a slight increase from $122 million at the beginning of the period[37] - The company reported a net cash provided by operating activities of $37 million in Q1 2025, down from $197 million in Q1 2024[37] Sales and Services - Total global distribution and value-added services sales decreased by 0.7% to $2,676 million in Q1 2025 compared to $2,693 million in Q1 2024[39] Other Financial Metrics - Adjusted EBITDA for Q1 2025 was $259 million, compared to $255 million in Q1 2024[12] - Adjusted EBITDA for Q1 2025 was reported at $259 million, an increase from $255 million in Q1 2024[47] - The change in contingent consideration was recorded at $2 million in Q1 2025, compared to $15 million in Q1 2024[45] - The company received $20 million in insurance proceeds related to a cyber incident, with $15 million net of taxes recognized in Q1 2025[44]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Henry Schein, with a focus on how actual results compare to estimates, which could significantly impact stock price [1][2] Company Summary - Henry Schein is expected to report quarterly earnings of $1.11 per share, reflecting a year-over-year change of +0.9%, with revenues projected at $3.23 billion, up 1.8% from the previous year [3] - The consensus EPS estimate has been revised 1.02% lower in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Henry Schein is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.89%, suggesting a likely earnings beat [10][11] - Historically, Henry Schein has beaten consensus EPS estimates three out of the last four quarters, indicating a positive trend [13] Industry Context - Cardinal Health, another player in the Zacks Medical - Dental Supplies industry, is expected to post earnings of $2.15 per share, with a year-over-year change of +3.4% and revenues of $55.03 billion, up 0.2% [17] - Cardinal Health's consensus EPS estimate has been revised 0.1% lower, but a higher Most Accurate Estimate has resulted in an Earnings ESP of 0.54%, suggesting a likely earnings beat [18]

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 ...