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]

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 ...

Henry Schein, Inc. (HSIC) registered adjusted earnings per share (EPS) of $1.22 in the third quarter of 2024, down 7.6% from the year-ago figure. However, the metric exceeded the Zacks Consensus Estimate by 5.2%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Following the earnings announcement, HSIC stock rose 0.03% at pre-market trading today.HSIC’s Q3 Revenues in DetailHenry Schein reported net sales of $3.17 billion, up a marginal 0.4% year over year. The metric lagged the Zacks C ...

Henry Schein (HSIC) came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $1.16 per share. This compares to earnings of $1.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.17%. A quarter ago, it was expected that this health care products maker would post earnings of $1.22 per share when it actually produced earnings of $1.23, delivering a surprise of 0.82%.Over the last four quarters ...

PRESS RELEASE FOR IMMEDIATE RELEASE HENRY SCHEIN REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS AND INCREASES 2024 FINANCIAL GUIDANCE ● Third-quarter 2024 GAAP diluted EPS of $0.78 and non-GAAP dilutedEPS of $1.22 ● Operating cash flow of $151 million for the third quarter of 2024; year-to-date operating cash flow of $644 million, up $112 million compared with year-to-date 2023 ● Increases 2024 full-year non-GAAP EPS guidance to $4.74 to $4.82 from $4.70 to $4.82 MELVILLE, N.Y., November 5, 2024 – Henry Schei ...

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Henry Schein (HSIC) despite an increase in revenues when it reports its quarterly results for September 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Henry Schein is expected to report quarterly earnings of $1.16 per share, reflecting a year-over-year decrease of 12.1%, while revenues are projected to reach $3.24 billion, representing a 2.5% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.27% higher in the last 30 days, indicating a slight bullish sentiment among analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate for Henry Schein is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.09%, suggesting a likelihood of beating the consensus EPS estimate [10]. Historical Performance - In the last reported quarter, Henry Schein exceeded the expected earnings of $1.22 per share by posting $1.23, achieving a surprise of +0.82%. Over the last four quarters, the company has beaten consensus EPS estimates twice [11][12]. Investment Considerations - While a potential earnings beat may increase stock price, other factors can also influence stock movement, making it essential for investors to consider the broader context beyond just earnings results [13][15].

Core Viewpoint - Henry Schein, Inc. is set to release its third-quarter 2024 results on November 5, with expectations of a revenue increase but a decline in earnings per share (EPS) compared to the previous year [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for revenues is $3.24 billion, reflecting a 2.5% increase from the same quarter last year [2]. - The Zacks Consensus Estimate for EPS is $1.17, indicating an 11.4% year-over-year decline [2]. - In the last reported quarter, the company achieved adjusted EPS of $1.23, surpassing the Zacks Consensus Estimate by 0.8% [1]. Group 2: Estimate Revision and Trends - Estimates for Henry Schein's third-quarter earnings have remained unchanged at $1.17 per share over the past 30 days [3]. - The company has had mixed performance in the past four quarters, with one meeting estimates, two surpassing, and one missing, resulting in an average negative surprise of 1.56% [1]. Group 3: Factors Influencing Performance - The recovery from last year's cybersecurity incident is expected to continue, particularly in the dental and medical distribution sectors [4]. - Sales trends in dental distribution are anticipated to improve as the company focuses on regaining episodic customers [4]. - The THRIVE Signature program is likely to contribute to overall sales growth through increased memberships [4]. Group 4: Business Developments - Sales of dental implant products in Europe are expected to grow due to competitive offerings, while North America is anticipated to see sales growth from a new product line [5]. - Recent acquisitions, such as abc dental AG in Switzerland, are expected to enhance the company's service offerings [5]. - The opening of an 811K-square-foot distribution center in Fort Worth, TX, is projected to positively impact revenues [5]. Group 5: Technology and Services - The technology segment, particularly Henry Schein One, is expected to drive growth, with a customer base for cloud-based solutions showing over 25% year-over-year growth [6]. - Collaborations between Henry Schein One and distribution businesses are anticipated to support growth, with new software integrations enhancing operational efficiency [7]. - Despite some challenges, the Home Solutions business is expected to perform well [7].

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Henry Schein (HSIC) . This company, which is in the Zacks Medical - Dental Supplies industry, shows potential for another earnings beat. This health care products maker has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the pa ...