Core Viewpoint - Henry Schein (HSIC) is expected to report a significant increase in quarterly earnings and revenues, with earnings per share projected at $1.19, an 80.3% increase year-over-year, and revenues forecasted at $3.27 billion, reflecting an 8.5% year-over-year growth [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.7% lower over the last 30 days, indicating a reevaluation by analysts [2]. - Revisions to earnings estimates are crucial as they serve as indicators for predicting investor actions regarding the stock [3]. Revenue Estimates - Analysts predict 'Net Sales- Healthcare Distribution- Global' to be $3.09 billion, a 10% year-over-year increase [5]. - 'Net Sales- Healthcare Distribution- Dental- Global' is estimated at $1.96 billion, reflecting a 9% increase from the prior-year quarter [5]. - 'Net Sales- Healthcare Distribution- Medical- Global' is expected to reach $1.12 billion, indicating an 11.8% year-over-year change [6]. - 'Net Sales- Technology and value-added services- Global' is projected at $225.31 million, suggesting a 6.3% increase year-over-year [6]. Geographic Revenue Estimates - 'Geographic Revenue- International- Health Care Distribution' is expected to be $848.16 million, a 9.4% increase year-over-year [7]. - 'Geographic Revenue- North America- Dental' is projected at $1.15 billion, reflecting a 9.5% year-over-year change [7]. - 'Geographic Revenue- North America- Medical' is estimated to reach $1.10 billion, indicating a 12.8% increase from the prior-year quarter [8]. - 'Geographic Revenue- North America- Health Care Distribution' is expected to be $2.26 billion, reflecting an 11.1% year-over-year change [10]. Stock Performance - Over the past month, Henry Schein shares have recorded a return of +4.1%, outperforming the Zacks S&P 500 composite's +2.6% change [10].

Core Viewpoint - Henry Schein, Inc. is set to release its fourth-quarter 2024 results on February 25, with expectations of significant revenue and earnings growth compared to the previous year [1]. Financial Estimates - The Zacks Consensus Estimate for revenues is $3.26 billion, indicating an 8.0% increase year-over-year [3]. - The Zacks Consensus Estimate for EPS is $1.30, reflecting a substantial year-over-year increase of 97% [3]. - Adjusted EPS for the last reported quarter was $1.22, surpassing the Zacks Consensus Estimate by 5.2% [2]. Estimate Revision Trend - Estimates for the upcoming quarter have increased by 6.6% to $1.30 per share over the past 30 days [4]. Factors Influencing Performance - The company is expected to have maintained recovery momentum from a previous cybersecurity incident that impacted its dental and medical distribution businesses [5]. - Global dental distribution is anticipated to have stable patient traffic, with international revenue growth noted in several countries including Germany, Austria, France, Brazil, Australia, and New Zealand [6]. - In North America, dental equipment sales are expected to remain consistent with the prior year, while international sales are projected to increase [7]. - The launch of new products, such as the Tapered Pro Conical implant and SmartShape Healers abutment, is expected to drive sales growth [8]. Segment Performance - The Health Care Distribution segment's revenues are estimated to be $3.11 billion, suggesting a 10.7% year-over-year improvement [9]. - The Technology and Value-Added Services segment is projected to generate revenues of $242.2 million, indicating a 14.3% year-over-year increase [15]. - The customer base for Henry Schein One's cloud-based solutions is likely to have grown, contributing positively to revenues [11]. Recent Developments - The acquisition of Acentus, a supplier of Continuous Glucose Monitors, is expected to enhance the company's capabilities in homecare medical supplies [13]. - The launch of Henry Schein Marketplace, offering over 8,000 non-clinical products, is anticipated to boost revenues [14].

Core Viewpoint - Henry Schein, Inc. has completed the acquisition of Acentus, enhancing its Home Solutions business and positioning itself better in the home medical supply market [1][5][6]. Company Summary - The acquisition of Acentus is expected to be neutral to 2025 non-GAAP earnings per share and accretive thereafter, although financial terms have not been disclosed [1]. - Following the acquisition announcement, HSIC shares decreased by 0.2% to $71.15, indicating a slight market reaction [2]. - With the addition of Acentus, Henry Schein's homecare medical products platform will have an annual revenue base of approximately $350 million [3]. - The company currently has a market capitalization of $8.98 billion, with 2025 earnings per share estimates remaining unchanged at $5.20 [4]. - Acentus, which has an annual revenue of approximately $35 million, will see its founders join Henry Schein as part of the acquisition [7]. Industry Summary - The global home healthcare market was valued at $390.24 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 7.96% from 2024 to 2030, driven by demand for cost-effective healthcare solutions and the rise of virtual care [8].

Group 1 - Provident Healthcare Partners advised Acentus in the acquisition of its assets by Henry Schein, Inc., focusing on Continuous Glucose Monitors (CGMs) [1][2] - The acquisition agreement was announced on November 20, 2024, and Acentus Founders will join Henry Schein post-acquisition [1][2] - Acentus, founded in 2018, specializes in CGMs for Medicare patients and combines advanced technology with customer service [5] Group 2 - Henry Schein, Inc. is a FORTUNE 500 company providing solutions for healthcare professionals, with a global network serving over 1 million customers [6] - Provident Healthcare Partners specializes in merger and acquisition advisory for healthcare companies, with expertise in the durable medical equipment industry [7]

Core Business Growth - Henry Schein, Inc.'s joint venture, Henry Schein One, is driving strong growth in core products and introducing new solutions [1] - The dental software business is progressing well, with mid-single-digit growth in practice management software and revenue cycle management products, and a 20% year-over-year expansion in the customer base [4] - The company has a robust acquisition strategy, acquiring 100% of abc dental AG and entering into an agreement with vVARDIS to distribute its product in the U.S. [6] Industry Trends - Favorable long-term trends in the dental industry are expected to support future growth, particularly as the industry shifts towards high-tech digital workflow systems [7] - There is consistent demand for dental specialty products, including implants and endodontics, contributing to organic market share gains [8] Financial Performance - The market capitalization of Henry Schein is $9.12 billion, with a stock performance decline of 4.2% over the past year compared to a 3.7% industry growth and a 28.6% rise in the S&P 500 [2] - The Zacks Consensus Estimate for 2024 earnings per share (EPS) is $4.77, with revenues projected at $12.85 billion, indicating a 4.1% rise from the previous year [11] Challenges - A cybersecurity incident in October 2023 has led to a 2.6% decrease in internally generated local currency sales, particularly affecting episodic customers [9] - The impact of Group Purchasing Organizations (GPOs) has increased pricing pressure and may pose future challenges for the company's operations [10]

Business: Henry Schein is a solutions company for health care. It operates through two segments: health care distribution, and technology and value-added services. The health care distribution segment distributes an array of offerings, including consumable products, small equipment, laboratory products, large equipment and equipment repair services. The technology and value-added services segment provides software, technology and other services to health care practitioners. It offers dental practice managem ...

Henry Schein, Inc. (HSIC) recently entered into an agreement to acquire Acentus, a national medical supplier that specializes in delivering Continuous Glucose Monitors (CGMs). Henry Schein anticipates the transaction to be neutral to 2024 non-GAAP earnings per share and accretive thereafter. The transaction is expected to be completed in the first quarter of 2025. Financial terms have not been disclosed.HSIC’s Likely Stock Trend Following the NewsFollowing the announcement, shares of HSIC moved south 1.5% t ...

Market Reaction to Potential Policy Changes - Henry Schein shares jumped nearly 5% on Monday, marking its best day since July, as investors anticipated potential policy changes under a second Trump administration [2] - Dental product makers Dentsply Sirona and Envista also saw gains during the session [2] - The Health Care Select Sector SPDR Fund (XLV) has tumbled around 3.5% in November, while the S&P 500 climbed more than 3% in the same period [6] Potential Impact on Dental Industry - Investors are focusing on dental hygiene product stocks as potential beneficiaries of Robert F Kennedy Jr's policies, particularly the potential removal of fluoride from public water systems [4] - Removing fluoride from water could lead to increased demand for dental visits and tooth cleaning products, according to Gordon Haskett [4][6] - Dental stocks were among the few health-focused equities spared from widespread selling following Kennedy's nomination announcement [7] Broader Healthcare Market Impact - Pharmaceutical companies faced pressure due to Kennedy's reputation as a vaccine skeptic [7] - Processed food stocks declined as traders anticipated increased scrutiny of junk food [7] - The healthcare sector experienced widespread selling, affecting drugmakers, contract research organizations, and health insurers [8] Regulatory Considerations - Any regulatory changes related to fluoride removal would likely take years to implement [8] - Drinking water regulations typically fall under the Environmental Protection Agency rather than Health and Human Services [8]

Financial Data and Key Metrics - Global sales for Q3 2024 were $3.2 billion, reflecting a 0.4% growth compared to Q3 2023 [20] - GAAP operating margin for Q3 2024 was 4.94%, a 140 basis point decline from the prior year [21] - Non-GAAP operating margin for Q3 2024 was 7.64%, a 45 basis point decline from the prior year [21] - GAAP net income for Q3 2024 was $99 million, or $0.78 per diluted share, compared to $137 million, or $1.05 per diluted share, in Q3 2023 [22] - Non-GAAP net income for Q3 2024 was $155 million, or $1.22 per diluted share, compared to $173 million, or $1.32 per diluted share, in Q3 2023 [22] - Adjusted EBITDA for Q3 2024 was $268 million, compared to $278 million in Q3 2023 [24] Business Line Performance - Dental distribution business showed stable patient traffic globally, with North American dental merchandise sales consistent with the prior year [10] - Dental equipment sales in North America were consistent with the prior year, with traditional equipment sales growing slightly and digital equipment sales decreasing [11] - Dental implant and biomaterial sales grew mid-single digits, driven by the launch of the BioHorizons Tapered Pro Conical implant in the U.S. [12] - Orthodontic sales declined due to restructuring and the transition to the Smilers brand Clear Aligner [14] - Technology and value-added services segment posted mid-single-digit growth, driven by growth in cloud-based solutions [15] Market Performance - North American dental merchandise market share grew sequentially compared to Q2 2024 [10] - International dental merchandise sales showed solid growth in Germany, Austria, France, Brazil, Australia, and New Zealand [10] - International dental equipment sales grew 5.6%, with strong performance in Europe, Australia, and New Zealand [11] - Medical sales reflected less demand for respiratory diagnostic products and flu/COVID vaccines, but Home Solutions business showed strong growth [18] Company Strategy and Industry Competition - The company is implementing its BOLD+1 Strategic Plan, focusing on high-growth, high-margin products and services [7] - Acquisitions made during 2022-2024 and product launches are delivering strong financial results [9] - The company is transitioning to a global e-commerce platform, with positive feedback from customers in the UK and Ireland [9] - The company expects to exceed its target of 40% of operating income generated by high-growth, high-margin businesses for fiscal 2024 [8] Management Commentary on Operating Environment and Future Outlook - The company is recovering from last year's cyber incident and steadily gaining market share in dental and medical distribution businesses [7] - Management expects modest improvement in dental and medical markets in 2025, supported by recent investments, new product launches, and continued cyber recovery [36] - The company is on target to achieve its restructuring goal, which should help offset headwinds from higher depreciation expenses [37] Other Important Information - The company repurchased approximately 2 million shares of common stock in Q3 2024 at an average price of $69.09 per share, totaling $135 million [31] - The company expects to collect most of its $60 million cyber insurance claim by the end of 2024 [30] - The company updated its 2024 non-GAAP diluted EPS guidance to $4.74 to $4.82, reflecting growth of 5% to 7% compared to 2023 [34] Q&A Session Summary Question: Overall health of dental and medical trends and impact of one-time items on guidance [39] - Management noted stable market conditions, with a shift towards lower-priced products in the dental market [41][42] - Equipment sales are expected to benefit from the timing of DS World, with most sales recognized in Q4 [44] - Medical sales are being monitored for flu season timing and its impact on diagnostic kit sales [45] Question: 2025 revenue and EPS growth expectations [47] - Management indicated that 2025 guidance will be provided in February 2025, with expectations for modest market improvement and continued market share gains [48] Question: Restructuring savings vs. higher depreciation costs [52] - Management expects restructuring savings to more than offset higher depreciation costs, leading to operating margin expansion in 2025 [53] Question: Market share recovery and consumables tailwind in 2025 [55] - The company expects to enter 2025 with higher market share compared to 2024, though the pace of recovery has been slower than expected [56] Question: Drivers of expected market improvement in 2025 [58] - Management cited stable dental equipment sales, potential interest rate reductions, and positive trends in Europe and other international markets as key drivers [59][61] Question: Implant performance and halo effect of new products [65] - The BioHorizons Tapered Pro Conical implant is driving growth in the U.S., with strong performance in Europe and Brazil [66] Question: Pricing environment and specialty vs. non-specialty market trends [69] - Management noted a shift towards lower-priced products in the dental market, with stable profitability despite pricing pressures [70] Question: Cost savings and revenue impacts from restructuring [74] - Restructuring efforts are focused on minimizing revenue impacts while achieving cost savings, particularly in distribution and technology businesses [75] Question: Medical market trends and competitive dynamics [78] - The medical business is stable, with recovery from the cyber incident and growth in Home Solutions and orthopedic businesses [79][81] Question: Technology and value-added services revenue dynamics [82] - The LPS acquisition and shift to SaaS models are impacting revenue recognition, but the business is growing well [83][84] Question: Manufacturer pricing trends and Clear Aligner restructuring [86] - Management noted price resistance among some manufacturers and is transitioning to the Smilers brand in orthodontics [89][90] Question: Capital allocation and M&A priorities for 2025 [93] - The company expects capital allocation in 2025 to align with historical trends, with potential M&A in Home Solutions and other strategic areas [94][97] Question: Strategic plan and future outlook [98] - The company is optimistic about its market share recovery, high-growth businesses, and upcoming 2025-2027 strategic plan [98][99]

Henry Schein (HSIC) reported $3.17 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 0.4%. EPS of $1.22 for the same period compares to $1.32 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.24 billion, representing a surprise of -2.05%. The company delivered an EPS surprise of +5.17%, with the consensus EPS estimate being $1.16.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- an ...