Core Viewpoint - Henry Schein, Inc. has announced a new share repurchase program of up to $750 million, supplementing an existing $500 million program initiated in January 2025 [1] Group 1 - The new share repurchase program is authorized by the Board of Directors [1] - The existing $500 million repurchase program is expected to be fully executed by the end of the first quarter of 2026 [1]

Core Viewpoint - Henry Schein Medical has expanded its SolutionsHub by partnering with Colaborate, aiming to enhance clinical lab operations across the U.S. by improving compliance, operational efficiency, and financial sustainability [1][3]. Company Overview - Henry Schein, Inc. is a solutions company for healthcare professionals, serving over 1 million customers globally with more than 300 valued solutions [6]. - The company operates a centralized and automated distribution network, offering over 300,000 branded and corporate brand products [7]. - In 2024, Henry Schein reported sales of $12.7 billion, with a compound annual growth rate of approximately 11.2% since going public in 1995 [8]. Partnership Details - The collaboration with Colaborate provides laboratories direct access to consulting expertise, enhancing the reliability and reach of Henry Schein's network [2]. - Colaborate has served over 500 institutions since 2005, offering services such as billing and collections, compliance assessments, and performance enhancements [2]. Industry Context - Clinical laboratories are facing increasing financial pressures and regulatory demands, necessitating improved operational efficiency and profitability [3]. - The partnership aims to simplify laboratory management and optimize financial outcomes, allowing healthcare organizations to focus on patient care [4].

Core Insights - The company's recent results were below expectations, leading to initial pressure on the stock price, which has since recovered to pre-release levels [1] - Investor communication has focused on initiatives to accelerate earnings and general expectations beyond 2025 [2] Financial Performance - The company experienced a temporary decline in stock price following the release of results, but it has rebounded to previous levels, indicating investor confidence [1] - Ongoing discussions with investors have aimed to clarify the company's strategies for future earnings growth [2]

Financial Data and Key Metrics Changes - The company's Q2 results were slightly below expectations, leading to initial stock pressure, but the stock price has since recovered to pre-release levels, indicating improved investor understanding of the company's guidance [3][4] - The company expects a significant increase in EPS in Q3 compared to Q2, driven by improvements in equipment sales and growth in the technology segment, which saw over 30% operating income growth year-over-year in Q2 [9][10] Business Line Data and Key Metrics Changes - The dental market in the U.S. has been relatively flat, with low single-digit growth, influenced by factors such as retirements and disruptions caused by the pandemic [11][12] - The company anticipates stronger Q4 revenues compared to Q3, particularly in equipment sales, due to tax incentive buying and a recovery in customer ordering patterns [6][8] Market Data and Key Metrics Changes - The company has observed a double-digit increase in renovation or expansion activities from customers, particularly among Dental Service Organizations (DSOs), indicating a stronger appetite for equipment investment compared to private practices [43][44] - The company is facilitating financing for approximately 50% of larger equipment sales, helping customers secure competitive rates [45] Company Strategy and Development Direction - The company is focusing on value creation projects aimed at optimizing gross profits and G&A costs, with expectations to provide updates on these initiatives in the upcoming Q3 earnings release [22][24] - The company is also exploring M&A opportunities, particularly in the medical and technology sectors, to enhance its offerings and expand its market presence [32][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential growth in the dental market with the expectation of declining interest rates, which could accelerate the opening of new dental practices [13][15] - The company is preparing for 2026 by assessing market growth rates and trends in core dental and medical segments, as well as the impact of tariffs on pricing and negotiations [20][21] Other Important Information - The company is in the assessment phase for its value creation projects, aiming for both short-term benefits and long-term sustainable value [25][29] - The CEO search is ongoing, with the board leading the effort to find a suitable successor [41][42] Q&A Session Summary Question: What investor feedback have you received post Q2? - Investors were initially concerned about the Q2 results but have since recovered confidence as they understand the company's guidance better [3][4] Question: How do you see the rest of the year playing out from a revenue perspective? - Q4 is expected to outperform Q3, particularly in equipment sales, driven by tax incentives and improved customer ordering patterns [6][8] Question: What are the potential headwinds and tailwinds for 2025? - The dental market has been flat, but potential interest rate declines could stimulate growth in new dental practices [11][13] Question: Can you elaborate on the value creation projects? - The company is currently assessing opportunities for optimizing gross profits and G&A costs, with updates expected in the Q3 earnings release [22][24] Question: What is the status of the CEO search? - The board is actively searching for a new CEO, acknowledging the challenge of finding a successor to Stanley Bergman [41][42]

Financial Data and Key Metrics Changes - The company's Q2 results were slightly below expectations, leading to initial stock pressure, but the stock price has since recovered to pre-release levels, indicating improved investor understanding of the company's guidance for the year [3][4] - EPS guidance suggests significant increases in Q3 and Q4 compared to Q2, driven by improvements in equipment sales and technology business performance, with over 30% operating income growth in the technology segment [9][10] Business Line Data and Key Metrics Changes - Equipment sales faced pressure in the first half of the year due to macroeconomic uncertainties, but there is confidence in equipment growth in the second half, supported by a healthy backlog and customer ordering patterns [6][8] - The technology segment showed strong momentum, with targeted investments leading to significant operating income growth [9] Market Data and Key Metrics Changes - The U.S. dental market has been relatively flat, with low single-digit growth, influenced by factors such as retirements and patient churn during the pandemic [11][12] - There is optimism for future growth in the dental market as interest rates potentially decline, which could accelerate the opening of new dental practices and increase demand for equipment [13][15] Company Strategy and Development Direction - The company is focusing on value creation projects aimed at optimizing gross profits and G&A costs, with expectations to provide updates on these initiatives in the upcoming Q3 earnings release [22][25] - M&A activity is primarily focused on the medical side, with successful integration of home solutions businesses and potential acquisitions in technology to enhance service offerings [35][38] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need to understand market growth opportunities and the impact of tariffs on pricing and negotiations [21][22] - There is a belief that the dental market will see increased investment as economic conditions improve, particularly with declining interest rates [14][15] Other Important Information - The company is in the assessment phase for value creation projects, with expectations for both short-term and long-term benefits [26] - The new e-commerce platform has received positive feedback, enhancing customer experience and potentially increasing order sizes and margins [49][51] Q&A Session Summary Question: What are investors focused on post Q2? - Investors are focused on understanding initiatives to accelerate earnings and the company's guidance for the remainder of the year [3][4] Question: How do you see the rest of the year playing out from a revenue perspective? - Q4 is expected to be stronger than Q3 due to seasonal equipment buying and improved customer ordering patterns [6][8] Question: What are the potential headwinds and tailwinds for 2025? - The dental market has been flat, but potential interest rate declines could lead to growth in new practices and equipment demand [11][13] Question: Can you elaborate on the value creation projects? - The company is currently assessing opportunities for optimizing gross profits and G&A costs, with updates expected in the Q3 earnings release [22][25] Question: What is the status of the CEO search? - The board is leading the search for a new CEO, emphasizing the importance of finding an effective leader [43][44] Question: Are you seeing differences in capital demand between DSO and non-DSO customers? - DSOs show more appetite for equipment investment compared to private practices, influenced by their access to capital [45] Question: What feedback did you receive from the e-commerce platform launch in Europe? - Customers appreciated the smooth transition and improved functionality of the new platform, enhancing their overall experience [52][53]

Group 1 - The company focuses on owning businesses that demonstrate growth, are supported by strong tailwinds, can implement price hikes, and possess robust balance sheets [1] - The investment strategy is conservative yet opportunistic, emphasizing value investing since 2005, with a reliance on financial data for assessing company health [1] - Qualitative analysis is used to complement financial data, providing a comprehensive view of a company's growth prospects [1] Group 2 - The company publishes research on platforms like Seeking Alpha and FAST Graphs, engaging with readers through questions and comments [1] - There is an indication of potential future investment activity in HSIC, with plans to initiate a long position within 72 hours [2] - The article expresses personal opinions of the author and does not involve compensation from any mentioned companies [2]

Core Insights - Henry Schein reported $3.24 billion in revenue for the quarter ended June 2025, a year-over-year increase of 3.3% [1] - The EPS for the same period was $1.10, down from $1.23 a year ago, indicating a decline in earnings [1] - The reported revenue exceeded the Zacks Consensus Estimate of $3.22 billion by 0.6%, while the EPS fell short of the consensus estimate of $1.18 by 6.78% [1] Revenue Breakdown - International Distribution and Value-Added Services - Dental generated $843 million, surpassing the average estimate of $812.72 million, reflecting a 6% year-over-year increase [4] - International Distribution and Value-Added Services - Medical reported $28 million, slightly above the average estimate of $26.36 million, with no year-over-year change [4] - U.S. Distribution and Value-Added Services totaled $1.86 billion, matching analyst estimates but showing an 11.4% decline compared to the previous year [4] - U.S. Distribution and Value-Added Services - Dental Merchandise recorded $602 million, exceeding the average estimate of $595.03 million, but down 29.1% year-over-year [4] - Global Specialty Products net sales were $386 million, slightly above the estimate of $382.44 million [4] - Global Technology net sales were $167 million, compared to the estimate of $161.25 million, reflecting a 22% year-over-year decline [4] - Global Distribution and Value-Added Services net sales reached $2.73 billion, exceeding the estimate of $2.71 billion, but down 6.5% year-over-year [4] - Global Distribution and Value-Added Services - Global Dental reported $1.72 billion, surpassing the estimate of $1.67 billion, with a 10.9% year-over-year decline [4] - Global Distribution and Value-Added Services - Global Medical generated $1.02 billion, slightly below the estimate of $1.03 billion, with a 1.8% year-over-year increase [4] - International Distribution and Value-Added Services totaled $871 million, exceeding the estimate of $839.08 million [4] - Global Distribution and Value-Added Services - Global Dental - Global Equipment reported $439 million, above the estimate of $424.06 million, with a minor 0.2% year-over-year decline [4] Stock Performance - Henry Schein's shares have returned -4.7% over the past month, contrasting with the Zacks S&P 500 composite's +1% 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 Insights - Henry Schein, Inc. (HSIC) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.10, a decrease of 10.6% year-over-year, and missed the Zacks Consensus Estimate by 6.8% [1][9] - The company achieved net sales of $3.24 billion, reflecting a year-over-year increase of 3.2%, and exceeded the Zacks Consensus Estimate by 0.6% [2][9] Revenue Breakdown - Global Distribution and Value-Added Services segment sales rose 2.9% year-over-year to $2.73 billion, surpassing the forecast of $2.66 billion [3] - Global Dental Distribution merchandise sales fell 0.4% in constant currencies, while equipment sales increased by 1.6% [4] - Global Medical Distribution sales jumped 6% in constant currencies, driven by increased patient traffic and growth from acquisitions [4] - Global Specialty Products sales totaled $386 million, up 4.2% year-over-year, reflecting growth in implant and biomaterial sales [6] - Global Technology segment sales reached $167 million, a 7.4% increase, led by strong growth in practice management systems [7] Margin Performance - Gross profit for the quarter was $1.02 billion, a 0.2% decrease year-over-year, with gross margin contracting by 110 basis points to 31.4% due to a 5% rise in the cost of sales [8][9] - SG&A expenses declined by 0.4% to $778 million, while adjusted operating profit increased by 0.4% year-over-year to $238 million [10] Liquidity and Share Repurchase - At the end of Q2 2025, the company had cash and cash equivalents of $145 million, up from $127 million at the end of Q1 [11] - Cumulative net cash provided by operating activities was $157 million, down from $493 million year-over-year, with nearly 3.7 million shares repurchased at an average price of $70.88 per share [12] Guidance - The company maintained its adjusted EPS forecast for 2025 in the range of $4.80-$4.94, indicating 1-4% growth from 2024 [13] - Projected revenue growth for 2025 remains unchanged at nearly 2-4% compared to the previous year [13] Strategic Outlook - The company is advancing its BOLD+1 Strategic Plan for 2025 to 2027, focusing on operational efficiency, enhancing customer experience, and growing its digital footprint [15]

Financial Data and Key Metrics Changes - Global sales for the second quarter were $3.2 billion, reflecting a sales growth of 3.3% compared to 2024, with constant currency sales growing by 2.7% [24][25] - GAAP operating margin for 2025 was 4.67%, a decrease of 42 basis points year-over-year, while non-GAAP operating margin was 6.96%, down 79 basis points [25][26] - GAAP net income for the second quarter was $86 million or $0.70 per diluted share, compared to $104 million or $0.80 per diluted share in the prior year [26][27] Business Line Data and Key Metrics Changes - U.S. Dental merchandise sales declined by 1.2% due to increased volume offset by lower product pricing, while U.S. Dental equipment sales fell by 4.7% due to economic uncertainty [28][29] - U.S. Medical Distribution business sales grew by 6.3%, driven by increased patient traffic and strong performance in the Home Solutions business [29] - Global Specialty Products Group sales grew by 4.2%, with solid growth in the implant and biomaterial business, including double-digit growth in value implants [30][31] Market Data and Key Metrics Changes - International Dental merchandise sales grew by 1.9%, impacted by the timing of Easter, while international Dental equipment sales grew by 12.1%, driven by strong sales in Canada and Europe [29][30] - The U.S. Dental market growth is still impacted by staffing challenges, but practice productivity is increasing as dentists invest in devices [48][49] - Patient traffic in the dental distribution business is reported to be stable globally, with some regions showing positive trends [46][51] Company Strategy and Development Direction - The company is maintaining its full-year guidance, expecting earnings to be weighted towards the second half of the year, aiming for high single-digit to low double-digit earnings growth [7][39] - The company is partnering with KKR's Capstone and engaging global management consulting firms to enhance distribution gross margins and increase efficiencies [7][8] - The Bold plus One strategy is being advanced, focusing on customer satisfaction and financial goals [8][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to high single-digit to low double-digit earnings growth, supported by strong July sales and targeted sales initiatives [39][40] - The company is confident in the stability of patient traffic and the potential for growth in the second half of the year, particularly in the dental equipment sector [66][67] - Management acknowledged macroeconomic uncertainties but remains positive about the overall market conditions and growth opportunities [66][67] Other Important Information - The company expects to achieve annual run rate savings of over $100 million by the end of 2025 from restructuring efforts [33][34] - The company repurchased approximately 3.7 million shares of common stock at an average price of $70.88 per share during 2025 [34][35] - The CEO announced plans to retire at the end of the year, transitioning to the role of Chairman of the Board [21][22] Q&A Session Summary Question: Can you provide insights on the dental business and patient traffic? - Management reported positive trends in July sales, with stable patient traffic and confidence in sustaining these trends moving forward [46][49] Question: What is the current state of the engagement with consulting firms? - The company is focusing on gross profit enhancement and restructuring, with expectations for positive results in 2026 [55][59] Question: How should we think about EPS cadence in the second half of the year? - EPS is expected to grow in the third quarter, with further growth anticipated in the fourth quarter, supported by targeted sales initiatives [65][66] Question: Can you comment on the orthodontic business and its turnaround? - The orthodontic business is small but showing signs of improvement, with efforts to stabilize and enhance profitability [70][73] Question: What is the outlook for DSOs and new office design projects? - DSOs are generally moving in a positive direction, with funding available for expansion and consistent growth in new office design projects [80][83]

Financial Data and Key Metrics Changes - Global sales for the second quarter were $3.2 billion, reflecting a sales growth of 3.3% compared to the previous year, with constant currency sales growing by 2.7% [26][27] - GAAP operating margin decreased to 4.67%, down 42 basis points year-over-year, while non-GAAP operating margin was 6.96%, a decrease of 79 basis points [27] - GAAP net income for the second quarter was $86 million or $0.70 per diluted share, compared to $104 million or $0.80 per diluted share in the prior year [28] - Non-GAAP net income was $135 million or $1.10 per diluted share, down from $158 million or $1.23 per diluted share year-over-year [28] Business Line Data and Key Metrics Changes - U.S. Dental merchandise sales declined by 1.2% due to lower product pricing, while U.S. Dental equipment sales fell by 4.7% due to economic uncertainty [30] - U.S. Medical Distribution business sales grew by 6.3%, driven by increased patient traffic and strong performance in the Home Solutions business [31] - Global Specialty Products Group sales increased by 4.2%, with solid growth in the implant and biomaterial business, including double-digit growth in value implants [32][33] - Global Technology Group sales grew by 7.4%, driven by strong growth in practice management software and revenue cycle management solutions [33] Market Data and Key Metrics Changes - International Dental merchandise sales grew by 1.9%, impacted by the timing of Easter, while international Dental equipment sales grew by 12.1% [31] - Sales growth in Brazil was particularly strong, and international sales growth was also noted in Canada and Europe [14][15] Company Strategy and Development Direction - The company is maintaining its full-year guidance, expecting earnings to be weighted towards the second half of the year, aiming for high single-digit to low double-digit earnings growth [7][8] - The company is partnering with KKR's Capstone and engaging global management consulting firms to enhance distribution gross margins and increase efficiencies [7][9] - The Bold plus One strategy is being expanded to drive superior customer satisfaction and financial goals [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to high single-digit to low double-digit earnings growth, supported by strong July sales and targeted sales initiatives [41][42] - The management noted that patient traffic in dental markets remains stable, with dentists investing in productivity-enhancing devices [50][51] - The company is focused on enhancing gross margins through pricing strategies and improving operational efficiencies [61][62] Other Important Information - The CEO announced plans to retire at the end of the year, transitioning to the role of Chairman of the Board, emphasizing the company's growth and development over the past 45 years [22][24] - The company has initiated restructuring efforts expected to yield annual run rate savings of over $100 million by the end of 2025 [35] Q&A Session Summary Question: Insights on July sales and patient traffic - Management reported positive trends in July sales, with stable patient traffic and a return to normal merchandise pricing [48][50] Question: Current state of consulting engagements - Management highlighted two key areas of focus with consulting firms: driving gross profit and restructuring for efficiency [58][60] Question: EPS cadence in the second half of the year - Management expects EPS growth to be more weighted towards the second half of the year, driven by targeted sales initiatives and backlog improvements [69][70] Question: Updates on orthodontics and aligner integration - Management noted that the orthodontics business is small but stabilizing, with efforts to improve profitability and product offerings [75][78] Question: Impact of targeted sales initiatives - Management indicated that targeted sales initiatives successfully addressed lost sales and improved customer engagement [90][92] Question: Competitive balance and RFPs from larger customers - Management acknowledged that RFPs are normal for larger customers, and the company remains a trusted supplier, working collaboratively to mitigate tariff impacts [96][99]