Market Overview - The current market behavior resembles the late 1990s, characterized by significant gains in a limited number of companies, leading to concerns about market concentration [1][4][3] - The "Magnificent Seven" have been pivotal in driving the S&P 500's overall gains, with market concentration reaching its highest level in at least 50 years [4][3] MarketAxess (MKTX) - MarketAxess has seen revenue growth from $511 million in 2019 to an estimated $814 million in 2023, with an 8% revenue growth this year [2] - Analysts anticipate a return to double-digit growth in both top and bottom lines by 2025 [2] - Despite a significant decline in stock value since its 2020 peak, the credit market's size supports both MarketAxess and its competitor Tradeweb, with potential for increased trading activity once interest rates are cut [8][7] Henry Schein (HSIC) - Henry Schein is the largest provider of dental equipment globally, operating in 33 countries and serving over one million customers [10] - The dental market is expected to grow rapidly due to increased consumer focus on aesthetics and an aging population, leading to higher demand for dental services [11][12] - Since its IPO in 1995, Henry Schein has achieved an 11.5% compounded annual growth rate in revenues, with strong growth prospects ahead [13] McCormick (MKC) - McCormick dominates the U.S. spices and seasonings market, controlling an estimated 40% to 60% market share in its primary categories [15] - The company has shown remarkable stock performance, with shares rising over 6,500% in the past 40 years, benefiting from strong consumer demand for flavorful foods [16] - McCormick is expanding into adjacent markets through acquisitions, such as Frank's and Cholula, to enhance its position in the hot sauce category [17]

Company Overview - Henry Schein Inc. (HSIC) is well positioned due to its extensive global presence and diverse distribution channels, although macroeconomic concerns are negatively impacting its operational results [1][5] - The company has strategically established distribution centers worldwide, enhancing customer service and operational efficiency, with a presence in North America, Australia, New Zealand, and emerging markets like China, Brazil, Israel, the Czech Republic, and Poland [2] Business Segments - In the Dental business, Henry Schein focuses on delivering customized solutions by leveraging market insights and technological advancements, while also selling cost-effective consumable products and manufacturing dental specialty products [3] - The company is optimistic about its dental technology joint venture, Henry Schein One, which is driving significant gains in core products such as practice management software and AI solutions [4] Financial Performance - The current macroeconomic environment, including exchange rate fluctuations, inflation, and recession, is adversely affecting Henry Schein's financial operations, leading to a 10.3% increase in selling, general, and administrative expenses in the first quarter compared to the previous year [5] - In the first quarter of 2024, the company's Technology and Value-Added service sales grew by 13.8% year-over-year, with North American growth driven by value-added services and international growth led by dental cloud-based solutions [10] Market Position - Henry Schein is experiencing consistent demand for its implant systems, endodontic products, and integrated software solutions, and is gaining market share in the Global Dental specialties market through acquisitions [11] - However, the company faced a decline in fourth-quarter 2023 sales by an estimated $350 million-$400 million due to a cybersecurity incident, which also impacted operating income by approximately $120 million-$130 million [12]

Group 1 - The Zacks Style Scores are complementary indicators that help investors select stocks with the best chances of outperforming the market over the next 30 days [2] - Each stock is rated from A to F based on value, growth, and momentum qualities, with A being the highest score indicating a better chance of outperforming [3] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [4] Group 2 - The Growth Score assesses a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [6] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection [7] Group 3 - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to aid in portfolio creation [8] - Stocks rated 1 (Strong Buy) have produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] Group 4 - Henry Schein Inc. is a leading distributor of health care products and services, operating in 33 countries [11] - The company currently holds a Zacks Rank of 3 (Hold) with a VGM Score of B and a Value Style Score of A, indicating attractive valuation metrics [12] - For fiscal 2024, the Zacks Consensus Estimate for Henry Schein's earnings has increased to $5.08 per share, with an average earnings surprise of 2.6% [12]

Group 1 - Zacks Premium offers various tools for investors to enhance their stock market confidence and investment strategies, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores categorize stocks based on value, growth, and momentum characteristics, providing ratings from A to F to indicate potential performance [2][3] Group 2 - The Value Score identifies attractive stocks using financial ratios like P/E and Price/Sales, appealing to value investors seeking undervalued opportunities [3] - The Growth Score focuses on a company's future prospects by analyzing earnings, sales, and cash flow, targeting growth investors [4] - The Momentum Score helps investors capitalize on price trends by assessing recent price changes and earnings estimate shifts [5] Group 3 - The VGM Score combines all three Style Scores, offering a comprehensive view for investors who utilize multiple investing strategies [6] - The Zacks Rank, based on earnings estimate revisions, has shown strong historical performance, with 1 (Strong Buy) stocks averaging a +25.41% annual return since 1988 [7][8] Group 4 - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, maximizing the probability of success [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure if earnings outlooks are negative [10] Group 5 - Henry Schein Inc. (HSIC) is a leading global distributor of health care products, serving various practitioners and operating in 33 countries [11] - HSIC currently holds a 3 (Hold) Zacks Rank with a VGM Score of A and a Momentum Style Score of B, having seen a 5.3% increase in shares over the past month [11][12] - Analysts have revised HSIC's earnings estimate upwards, with the Zacks Consensus Estimate increasing by $0.02 to $5.08 per share, indicating a solid investment opportunity [12]

Henry Schein (HSIC) recently extended its existing partnership with Special Olympics through 2025 to support health screening and education for its athletes at select events around the world. Through the collaboration, the company donates essential oral health and medical care products for the Special Olympics Healthy Athletes program in Australia, Canada, Germany, the United Kingdom and the United States. The donations to Special Olympics Healthy Athletes are an initiative of Henry Schein Cares, HSIC's glo ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores.What ar ...

| --- | --- | --- | --- | |--------------------------------------------|---------|---------|-------| | (in millions of USD) | Q1 2024 | Q1 2023 | y/y ∆ | | Global Technology/VAS | $217 | $191 | 13.8% | | Global Dental Specialties* | 284 | 233 | 21.6% | | Global Technology/VAS + Dental Specialties | $501 | $424 | 18.1% | | | | | | 17 18 19 Q1 2024 Financial Highlights Q1 2023 Q1 2024 Growth Q1 2023 Q1 2024 Growth Net Sales $ 3,060 $ 3,172 3.7% $ 3,060 $ 3,172 3.7% Operating Income 175 150 -14.6% $ 15 235 225 ...

Financial Data and Key Metrics - Global sales for Q1 2024 were $3.2 billion, with a sales growth of 3.7% and LCI sales decreased by 1.8% [24] - Non-GAAP net income for Q1 2024 was $143 million or $1.10 per diluted share, compared to $161 million or $1.21 per diluted share in the prior year [25] - Operating cash flow for Q1 2024 was $197 million, compared to $27 million last year, driven by a reduction in receivable balances [41] - Adjusted EBITDA for Q1 2024 was $255 million, consistent with Q1 2023 [88] - Gross margin improved by 32 basis points, primarily due to contributions from businesses acquired in 2023 [61] Business Line Performance - Global Dental sales were $1.9 billion, with sales growth of 0.8% and LCI sales decreased by 2.9% [88] - Dental specialty product sales were $284 million, with growth of 21.6% driven by acquisitions and low single-digit organic growth in implants and endodontics [34] - Global Medical sales were $1.0 billion, with sales growth of 7.3% and LCI sales decreased by 0.7% [49] - Technology and value-added services sales were $217 million, with total sales growth of 13.8% [38] Market Performance - North American Dental equipment LCI sales grew 2.9%, while international equipment sales decreased by 3.8% [48] - CAD/CAM equipment grew nicely globally, with pricing on intraoral scanners stabilizing [34] - Germany showed positive trends in equipment sales, driven by technical service [48] - The U.S. THRIVE Signature program added 2,000 new members in Q1, bringing the total to approximately 5,000 [18] Strategic Direction and Industry Competition - The company is focusing on high-growth, high-margin businesses, with 40.9% of non-GAAP operating income coming from these areas in Q1 [49] - New product launches, such as the Easy 2.0 implant system in Germany and the upcoming BioHorizons implant system in the U.S., are expected to expand market share [37] - The company is integrating recent acquisitions, including Biotech and S.I.N, which will contribute to internal growth starting in Q2 [8] - The BOLD+1 strategic plan is driving growth, with a focus on innovation in dental implants, endodontics, and orthodontics [54] Management Commentary on Operating Environment and Future Outlook - The company expects sales growth to be more significant in the back half of 2024, driven by recovery from the cyber incident and new product launches [91] - Management remains optimistic about the dental and medical markets, with stable patient traffic and a shift of procedures from acute care to alternate care settings [32] - The company is confident in its ability to regain market share and improve growth in Q3 and Q4 [30] Other Important Information - The cyber incident reduced sales growth by approximately 300 to 400 basis points in Q1 [24] - The company repurchased approximately 1 million shares of common stock in Q1 at an average price of $75.10 per share [62] - The company is in the process of filing a cyber insurance claim, with a $60 million claim limit and a $5 million retention [51] Q&A Session Summary Question: Gross margin drivers and sustainability [96] - The gross margin improvement was driven by a mix of high-growth, high-margin businesses and recovery in distribution margins [104][71] - The company expects gross margins to remain strong, supported by ongoing recovery in distribution businesses and contributions from recent acquisitions [103] Question: Dental equipment growth and market trends [72] - Dental equipment sales were impacted by a pause in Q4 due to the cyber incident, but the market has stabilized, with traditional equipment sales consistent with last year [73] - CAD/CAM equipment is performing well, with pricing stabilized and no significant discounting [73] Question: Implant market growth and market share [76] - The company is not significantly impacted by price sensitivity in the implant market, as it is positioned as a discounter of premium products [77] - New product launches, such as the Easy 2.0 in Germany and the upcoming BioHorizons implant in the U.S., are expected to expand market share [78][79] Question: Revenue growth cadence and expectations [91] - The company expects stronger growth in the back half of 2024, driven by recovery from the cyber incident and new product launches [91] Question: Impact of the Change Healthcare cyber incident on technology sales [113] - The Change Healthcare cyber incident caused a stagnation in technology sales in March, but the company expects growth to normalize in Q2 [114] - The company successfully processed claims through an alternative provider within 48 hours, which was well-received by customers [116] Question: Medical distribution competitive landscape [118] - The company is not significantly impacted by competitive pressures in the medical distribution market, with strong performance in alternate care settings [118] Question: North American dental consumables performance [119] - North American dental consumables sales were down 5%, with a 300-400 basis point impact from the cyber incident [119] - Pricing in the dental market is relatively stable, with some movement towards corporate brands [120] Question: SG&A cadence and cost restructuring [127] - SG&A was higher in Q1 due to the integration of higher-margin businesses, with expectations for continued consistency in future quarters [128] Question: Home health growth opportunities [130] - The company is optimistic about its Home Solutions business, which is approaching $350 million annually and expected to grow organically [131] Question: Dental market skepticism and challenges [133] - The dental market is stable, with seasonal impacts in Q1, but overall leaning towards growth [134] - The company is well-positioned to navigate challenges, with a focus on innovation and customer support [137]

For the quarter ended March 2024, Henry Schein (HSIC) reported revenue of $3.17 billion, up 3.7% over the same period last year. EPS came in at $1.10, compared to $1.21 in the year-ago quarter.The reported revenue represents a surprise of -1.76% over the Zacks Consensus Estimate of $3.23 billion. With the consensus EPS estimate being $0.99, the EPS surprise was +11.11%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Henry Schein, Inc. (HSIC) registered adjusted earnings per share (EPS) of $1.10 in the first quarter of 2024, down 9.1% from the year-ago period’s adjusted EPS. However, the metric exceeded the Zacks Consensus Estimate by 11.1%.Revenues in DetailHenry Schein reported net sales of $3.17 billion in the first quarter, up 3.7% year over year. The metric lagged the Zacks Consensus Estimate by 1.8%. The year-over-year upside reflects an internal sales decline of 1.8%.On a geographic basis, the company recorded sa ...