Financial Data and Key Metrics Changes - Global sales for the third quarter were $3.3 billion, reflecting a sales growth of 5.2% compared to the third quarter of 2024, with constant currency sales growth of 4.0% [17][22] - GAAP operating margin for the third quarter was 4.88%, a decrease of six basis points year-over-year, while non-GAAP operating margin improved to 7.83%, an increase of 19 basis points [18][19] - Third quarter GAAP net income was $101 million, or $0.84 per diluted share, compared to $99 million, or $0.78 per diluted share in the prior year [20] - Non-GAAP net income for the third quarter was $167 million, or $1.38 per diluted share, compared to $155 million, or $1.22 per diluted share in the prior year [20] Business Line Data and Key Metrics Changes - Global distribution and value-added services group sales grew by 4.8%, with U.S. dental merchandise sales increasing by 3.3% and U.S. dental equipment sales growing by 1.2% [22] - Global specialty products group sales grew by 5.9%, with strong performance in implants and biomaterials, particularly in the value segment [23] - Global technology group sales experienced a total growth of 9.7%, driven by practice management software and revenue cycle management solutions [23][14] Market Data and Key Metrics Changes - U.S. medical distribution sales grew by 4.7%, driven by strong demand for medical products and pharmaceuticals, particularly in the dialysis business [10][22] - International dental merchandise sales grew by 6.0%, with notable growth in Brazil, Canada, Italy, Spain, and Australia [22] - International implant sales increased by high single digits, particularly in the Dutch region and Latin America [13] Company Strategy and Development Direction - The company is focused on executing the BOLD+1 strategy, aiming for over 50% of non-GAAP operating income to come from high-growth, high-margin businesses by the end of 2027 [8] - A $750 million increase in the share repurchase program was approved, with expectations to continue buybacks at a similar pace [8][25] - The company is rolling out a new global e-commerce platform, with a phased launch in North America expected to follow the successful launch in the U.K. and Ireland [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to high single-digit to low double-digit earnings growth, supported by ongoing value creation initiatives targeting over $200 million in operating income improvements [7][24] - The cyber incident is now behind the company, and management is optimistic about sales momentum and market share gains [39][32] - The overall market is described as stable, with some inflationary pressures, but the company is gaining market share in key segments [51][49] Other Important Information - The company recorded restructuring expenses of $34 million during the third quarter, with expectations of achieving annual run-rate savings of over $100 million from the restructuring program [24] - The effective tax rate for the third quarter on a non-GAAP basis was 22.9%, reflecting a decrease from the prior year [20] Q&A Session Summary Question: Future earnings growth and restructuring benefits - Management indicated that the $200 million operating income improvement is a multi-year plan, with expectations for some operating improvements in 2026 [40][41] Question: Clarification on EPS guidance and market conditions - The midpoint in 2025 EPS guidance increased by $0.05, reflecting both the remeasurement gain and sales momentum [44][47] Question: Specialty products operating profit and margin dynamics - Specialty products' operating profit was impacted by a strong prior-year comparison and a shift in sales mix towards lower-margin value implants [66] Question: Growth trajectory for specialty products - Continued growth in premium implants and endodontic sales is necessary for EBIT dollar growth in the specialty business [71] Question: Market share gains and competitive landscape - Management noted confidence in gaining market share, particularly in the dental and medical segments, despite a stable market environment [49][85]

Financial Data and Key Metrics Changes - Global sales for the third quarter were $3.3 billion, reflecting a sales growth of 5.2% compared to the third quarter of 2024, with constant currency sales growth of 4.0% [17][22] - GAAP operating margin for the third quarter was 4.88%, a decrease of six basis points year-over-year, while non-GAAP operating margin increased to 7.83%, up 19 basis points [18][19] - Third quarter GAAP net income was $101 million, or $0.84 per diluted share, compared to $99 million, or $0.78 per diluted share in the prior year [20] - Non-GAAP net income for the third quarter was $167 million, or $1.38 per diluted share, compared to $155 million, or $1.22 per diluted share in the prior year [20] Business Line Data and Key Metrics Changes - Global distribution and value-added services group sales grew by 4.8%, with U.S. dental merchandise sales increasing by 3.3% and U.S. dental equipment sales growing by 1.2% [22] - Global specialty products group sales grew by 5.9%, with strong performance in implants and biomaterials, particularly in the value segment [23][12] - Global technology group sales grew by 9.7%, driven by practice management software and revenue cycle management solutions [23][14] Market Data and Key Metrics Changes - U.S. medical distribution sales grew by 4.7%, reflecting strong demand for medical products, particularly in the dialysis business [10][22] - International dental merchandise sales grew by 6.0%, driven by sales growth in Brazil, Canada, Italy, Spain, and Australia [22] - International implant sales increased by high single digits, particularly in the Dutch region and Latin America [13] Company Strategy and Development Direction - The company is focused on executing the BOLD+1 strategy, aiming for over 50% of non-GAAP operating income to come from high-growth, high-margin businesses by the end of 2027 [8][6] - A $750 million increase in the share repurchase program was approved, with expectations to continue buybacks at a similar pace [8][25] - The company is rolling out a new global e-commerce platform, with a phased launch in North America expected to follow the successful launch in the U.K. and Ireland [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to high single-digit to low double-digit earnings growth, supported by ongoing value creation initiatives [7][24] - The cyber incident is now behind the company, allowing sales teams to focus on growth [39][6] - The management team remains optimistic about the future, emphasizing the importance of customer partnerships and innovation [32][33] Other Important Information - The company recorded restructuring expenses of $34 million during the third quarter, with expectations of achieving annual run-rate savings of over $100 million from the restructuring program [24] - The effective tax rate for the third quarter was 22.9%, lower than the previous year's rate of 24.9% [20] Q&A Session Summary Question: Future earnings growth and restructuring benefits - Management indicated that the $200 million operating income improvement is a multi-year plan, with some benefits expected in 2026 [40][41] Question: Clarification on EPS guidance and market conditions - The midpoint of 2025 EPS guidance increased by $0.05, reflecting momentum in sales growth and a remeasurement gain [44][46] Question: Specialty products operating profit and margin dynamics - Specialty products operating profit was impacted by a strong prior-year comparison and a shift in sales mix towards lower-margin value implants [66][67] Question: Growth trajectory for specialty products - Continued growth in premium implants and improvements in endodontics are necessary for EBIT growth in the specialty business [70][71] Question: Share gains and market conditions - Management noted stable market conditions with some share gains, particularly in the dental and medical sectors [51][52]

Financial Data and Key Metrics Changes - Global sales for Q3 2025 were $3.3 billion, reflecting a sales growth of 5.2% compared to Q3 2024, with constant currency sales growth of 4.0% [17] - GAAP operating margin for Q3 2025 was 4.88%, a decrease of six basis points year-over-year, while non-GAAP operating margin was 7.83%, an increase of 19 basis points [18] - GAAP net income for Q3 2025 was $101 million, or $0.84 per diluted share, compared to $99 million, or $0.78 per diluted share in the prior year [19] - Non-GAAP net income for Q3 2025 was $167 million, or $1.38 per diluted share, compared to $155 million, or $1.22 per diluted share in Q3 2024 [19] Business Line Data and Key Metrics Changes - Global distribution and value-added services group sales grew by 4.8%, with U.S. dental merchandise sales increasing by 3.3% and U.S. dental equipment sales growing by 1.2% [22] - Global specialty products group sales grew by 5.9%, with strong performance in implants and biomaterials, particularly in the value segment [23] - Global technology group sales grew by 9.7%, driven by practice management software and revenue cycle management solutions [23] Market Data and Key Metrics Changes - U.S. medical distribution sales grew by 4.7%, despite lower demand for influenza vaccines and respiratory diagnostic products [22] - International dental merchandise sales grew by 6.0%, with strong performance in Brazil, Canada, Italy, Spain, and Australia [22] - International implant sales increased by high single digits, particularly in the Dutch region and Latin America [12] Company Strategy and Development Direction - The company is focused on executing the BOLD+1 strategy, aiming for over 50% of non-GAAP operating income to come from high-growth, high-margin businesses by the end of 2027 [8] - A $750 million increase in the share repurchase program was approved, with expectations to continue buybacks at a similar pace [8] - The company is rolling out a new global e-commerce platform, with a phased launch in North America expected [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to long-term goals of high single-digit to low double-digit earnings growth, supported by ongoing value creation initiatives [6][24] - The cyber incident is now behind the company, and management is optimistic about sales momentum and market share gains [36] - The effective tax rate for Q3 2025 was 22.9%, with expectations to return to a range of 24-25% in Q4 [19] Other Important Information - The company recorded restructuring expenses of $34 million in Q3 2025, with expectations of achieving annual run-rate savings of over $100 million from the restructuring program [24] - The company generated strong operating cash flow of $174 million in Q3 2025, compared to $151 million in Q3 2024 [25] - The company celebrated its 30th anniversary since its IPO, highlighting significant growth over the years [28] Q&A Session Summary Question: Comments on future earnings growth and restructuring benefits - Management indicated that the $200 million operating income improvement from value creation initiatives is a multi-year plan, with some benefits expected in 2026 [36][38] Question: Clarification on EPS guidance and remeasurement gain - The midpoint of 2025 EPS guidance increased by $0.05, reflecting stable markets and sales momentum, with the remeasurement gain contributing $0.08 [39][40] Question: Market stability and share gains - Management noted that the market is generally stable, with some inflation, and that the company is gaining market share in distribution and specialty products [41][42] Question: Specialty products operating profit and margin dynamics - Management acknowledged that while specialty products' operating profit was up, the growth in value implants diluted margins compared to premium implants [49][50] Question: Phasing of the $200 million operating income improvement - Management stated that the $200 million is a net opportunity for operating income improvement, with some reinvestments expected [56][57]

Core Insights - Henry Schein (HSIC) reported quarterly earnings of $1.38 per share, exceeding the Zacks Consensus Estimate of $1.27 per share, and up from $1.22 per share a year ago, representing an earnings surprise of +8.66% [1] - The company posted revenues of $3.34 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.02% and increasing from $3.17 billion year-over-year [2] - The stock has underperformed the market, losing about 6.6% since the beginning of the year compared to the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.31 on revenues of $3.3 billion, and for the current fiscal year, it is $4.82 on revenues of $12.98 billion [7] - The estimate revisions trend for Henry Schein was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical - Dental Supplies industry, to which Henry Schein belongs, is currently in the top 23% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Q2 2025 Financial Performance - Total sales increased by 3.3% to $3.24 billion[18, 54] - Global Distribution and Value-Added Services Group sales grew by 2.4%[15] - Global Specialty Products Group sales increased by 3.3%[15] - Global Technology Group sales grew by 6.6%[15] - Non-GAAP diluted EPS was $1.10, compared to $1.23 in Q2 2024[15] - Adjusted EBITDA was $256 million, compared to $268 million in Q2 2024, a decrease of 4.8%[15, 18] Full Year 2025 Guidance - The company maintains guidance for 2025 non-GAAP diluted EPS of $4.80 to $4.94[12, 46] - Adjusted EBITDA is expected to grow in the mid-single digits versus 2024 Adjusted EBITDA of $1.1 billion[46] - Total sales growth is projected to be between 2% and 4%[12, 48] Capital Allocation - $32 million was invested in capital expenditures in Q2[39] - $50 million was invested in acquisitions in Q2[39] - $259 million was used for share repurchases in Q2[39]

Core Insights - Medical equipment distributor Henry Schein raised its annual profit forecast after exceeding Wall Street estimates for third-quarter results [1] - The strong performance was driven by robust sales in both dental and medical segments [1] Financial Performance - Henry Schein reported third-quarter results that surpassed analyst expectations, indicating a positive trend in sales [1] - The company’s updated profit forecast reflects confidence in continued growth and market demand [1] Market Segments - Sales growth was particularly strong in the dental sector, contributing significantly to overall performance [1] - The medical segment also showed strong sales, highlighting the diversified nature of the company’s revenue streams [1]

Financial Performance - Q3 2025 GAAP diluted EPS was $0.84, up from $0.78 in Q3 2024; non-GAAP diluted EPS was $1.38, compared to $1.22 in Q3 2024[5] - Total net sales for Q3 2025 reached $3.3 billion, a 5.2% increase compared to Q3 2024, driven by 3.3% internal sales growth, 0.7% from acquisitions, and 1.2% from foreign currency exchange[6] - The company raised its 2025 non-GAAP diluted EPS guidance to $4.88 to $4.96, reflecting a year-over-year growth of 3% to 5%[15] - Adjusted EBITDA for Q3 2025 was $295 million, compared to $268 million in Q3 2024[8] - Net income attributable to Henry Schein, Inc. for Q3 2025 was $101 million, compared to $99 million in Q3 2024, showing a 2% increase[33] - Year-to-date net income for 2025 reached $316 million, compared to $302 million in the same period of 2024[52] - Year-to-date Adjusted EBITDA for 2025 totaled $810 million, compared to $791 million in 2024, indicating a growth of about 2.4%[52] Sales Growth - Total net sales for the first nine months of 2025 were $9.7 billion, a 2.8% increase compared to the same period in 2024[8] - Global Technology sales increased by 9.7% in Q3 2025, reflecting accelerated adoption of cloud-based software and new revenue cycle management solutions[6] - Global Dental Distribution merchandise sales increased by 4.6% in Q3 2025 compared to Q3 2024, indicating consistent growth across U.S. and international markets[8] - Total Global Distribution and Value-Added Services sales for Q3 2025 were $8,247 million, a 1.4% increase from $8,058 million in Q3 2024[44] - Medical segment sales in the U.S. rose by 3.2% to $3,117 million in Q3 2025[44] - Global Specialty Products sales increased by 2.3% to $1,122 million in Q3 2025[44] Shareholder Actions - The company repurchased approximately 3.3 million shares of common stock for a total of $229 million during Q3 2025[9] - The board approved an amendment allowing KKR to increase its ownership in HSIC stock up to 19.9%[12] Assets and Liabilities - Total current assets increased to $4,395 million as of September 27, 2025, compared to $3,983 million at the end of December 2024[36] - Total assets grew to $11,097 million as of September 27, 2025, up from $10,218 million at the end of December 2024[36] - Total liabilities increased to $6,197 million as of September 27, 2025, compared to $5,381 million at the end of December 2024[36] - Cash and cash equivalents at the end of Q3 2025 were $136 million, compared to $126 million at the end of Q3 2024[38] Operating Income and Expenses - Operating income for Q3 2025 increased to $164 million, compared to $157 million in Q3 2024, representing a 4.5% growth[33] - Interest expense increased to $38 million in Q3 2025 from $34 million in Q3 2024[52] - Restructuring costs for Q3 2025 were $34 million, down from $48 million in Q3 2024, showing a reduction of approximately 29.2%[52] - Costs associated with shareholder advisory matters and select value creation consulting costs amounted to $10 million in Q3 2025[52] - Depreciation and amortization expenses for Q3 2025 were $80 million, an increase from $74 million in Q3 2024[52] Value Creation Initiatives - Value creation initiatives are expected to deliver over $200 million in operating income improvements over the next few years[5]

Core Insights - Henry Schein, Inc. (HSIC) is set to announce its third-quarter 2025 results on November 4, with previous adjusted EPS of $1.10 missing estimates by 6.78% [1] - The Zacks Consensus Estimate anticipates revenues of $3.27 billion, reflecting a 3.1% year-over-year increase, and an EPS of $1.27, indicating a 4.1% improvement [2] Q3 Estimates for HSIC - Revenue estimates for the third quarter have been set at $3.27 billion, which is a 3.1% increase from the previous year [2] - EPS estimates are projected at $1.27, showing a year-over-year growth of 4.1% [2] Estimate Revision Trend - Earnings estimates for the third quarter have decreased by 1 cent over the past 30 days [3] Factors Influencing Performance - The Global Distribution and Value-Added Services segment is expected to show strong volume growth in the U.S. Dental Merchandise business, aided by improved average selling prices [4] - International performance, particularly in Brazil, is anticipated to be favorable, with U.S. Dental Equipment sales recovering from tariff-related uncertainties [4] - The Value-Added Services segment may benefit from the high-margin Practice Transitions business, while the U.S. Global Medical business is likely to see increased sales of medical products and pharmaceuticals [5] Revenue Projections - Global Distribution and Value-Added Services revenues are projected to rise by 2.1% year-over-year in the third quarter [6] - The Specialty Products segment is expected to achieve a 4.2% year-over-year revenue increase, driven by strong sales of dental implants and biomaterials [9] - Global Technology revenues are anticipated to grow by 7.4% year-over-year, supported by cloud and SaaS offerings [10] Earnings ESP and Zacks Rank - Henry Schein currently has an Earnings ESP of -0.35%, indicating a lower likelihood of beating estimates [11] - The company holds a Zacks Rank of 4 (Sell) [12]

Company Overview - Henry Schein, Inc. is the world's largest provider of health care solutions to office-based dental and medical practitioners, offering over 300 valued solutions to more than 1 million customers globally [2][4] - The company operates through a centralized and automated distribution network, providing a selection of more than 300,000 branded products and corporate brand products [3] - Henry Schein is a FORTUNE 500 Company and a member of the S&P 500 index, with operations or affiliates in 33 countries and territories [4] Financial Performance - The company's sales reached $12.7 billion in 2024, growing at a compound annual rate of approximately 11.2 percent since becoming a public company in 1995 [4] Upcoming Events - Henry Schein will participate in investor conferences in November, including the Stifel's Healthcare Conference on November 12, 2025, and the Jefferies Healthcare Conference on November 18, 2025 [6] - The company will also webcast its third quarter 2025 financial results on November 4, 2025, at 8:00 A.M. Eastern time [9]

Company Overview - Henry Schein, Inc. is a leading global provider of healthcare products and services for dental, medical, and veterinary professionals, operating in over 33 countries and delivering more than 300,000 products through its automated distribution network [1] - The company has around 25,000 employees and over one million customers worldwide, with a market capitalization of $7.64 billion [2] Financial Performance - Henry Schein is set to report its third-quarter results for fiscal 2025, with analysts expecting a profit growth of 4.1% year-over-year to $1.27 per diluted share [3] - For the current fiscal year, the company's profit is projected to grow 1.9% annually to $4.83 per diluted share [4] - In its second-quarter earnings for fiscal 2025, the company reported a topline growth of 3.3% year-over-year to $3.24 billion, exceeding Wall Street's expectation of $3.22 billion [6] Stock Performance - Over the past 52 weeks, Henry Schein's stock has declined by 11.7%, and it is down by 7.6% year-to-date, underperforming the broader S&P 500 Index, which gained 14.8% and 14.5% over the same periods [5] - The stock's performance has also lagged behind its sector, as the Health Care Select Sector SPDR Fund has declined by 5.5% over the past 52 weeks but rose 5.3% year-to-date [5] Business Challenges - The company has shown weaknesses in its organic revenue performance, with sales growing only 1.9% year-over-year in Q2 when excluding the impact of acquisitions and foreign currency exchange [7] - The adjusted EPS for Q2 dropped by 10.6% from the previous year to $1.10, missing the expected $1.18, which led to a 7.4% intraday stock decline [6]