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 ...

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| --- | --- | --- | --- | |--------------------------------------------|---------|---------|-------| | (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 ...

Henry Schein (HSIC) came out with quarterly earnings of $1.10 per share, beating the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.11%. A quarter ago, it was expected that this health care products maker would post earnings of $0.70 per share when it actually produced earnings of $0.66, delivering a surprise of -5.71%.Over the last four quarte ...

Financial Performance - First-quarter 2024 sales increased by 3.7% to $3.2 billion compared to the first quarter of 2023[6] - GAAP diluted EPS for the quarter was $0.72, down from $0.91 in the first quarter of 2023, while non-GAAP diluted EPS was $1.10, down from $1.21[10] - Net income attributable to Henry Schein, Inc. for Q1 2024 was $93 million, down 23.2% from $121 million in Q1 2023[38] - Diluted EPS attributable to Henry Schein, Inc. decreased by 20.9% to $0.72 in Q1 2024 from $0.91 in Q1 2023[38] - Non-GAAP net income attributable to Henry Schein, Inc. was $143 million in Q1 2024, down 11.3% from $161 million in Q1 2023[38] - Total net income (GAAP) for Q1 2024 was $98 million, compared to $128 million in Q1 2023, reflecting a decline of 23.4%[44] Sales and Revenue - The company tightened its total sales growth guidance for 2024 to a range of 8% to 10%, reflecting recovery from last year's cyber incident[5] - Total sales for Q1 2024 were $3,172 million, representing a growth of 3.7% compared to $3,060 million in Q1 2023[34] - Global Medical sales grew by 7.3%, while Global Dental sales saw a decrease of 2.9% internally[7] - Dental merchandise sales decreased by 3.7% to $1,914 million in Q1 2024 from $1,898 million in Q1 2023[34] Cash Flow and Assets - Cash and cash equivalents at the end of Q1 2024 were $159 million, down from $171 million at the end of Q4 2023[31] - The company reported a cash flow from operating activities of $197 million in Q1 2024, significantly up from $27 million in Q1 2023[31] - Total assets decreased from $10,573 million to $10,145 million, a decline of approximately 4.1%[29] - Total current liabilities decreased from $2,683 million to $2,334 million, a reduction of approximately 13%[29] Costs and Expenses - Adjusted EBITDA for the quarter was $255 million, consistent with the first quarter of 2023[10] - Adjusted EBITDA for Q1 2024 was $255 million, slightly down from $256 million in Q1 2023, indicating a decrease of 0.4%[44] - Interest expense increased significantly to $30 million in Q1 2024 from $14 million in Q1 2023, marking a rise of 114.3%[44] - Depreciation and amortization expenses rose to $73 million in Q1 2024, up from $52 million in Q1 2023, an increase of 40.4%[44] - Income taxes for Q1 2024 were $32 million, down from $39 million in Q1 2023, a decrease of 17.9%[44] Strategic Initiatives - The company continues to focus on its BOLD+1 Strategic Plan and is optimistic about contributions from recent acquisitions[3] - The company repurchased approximately 1 million shares at an average price of $75.10 per share, totaling around $75 million[6] - Henry Schein has approximately $190 million authorized for future stock repurchases[8] Restructuring and Incident Impact - The company incurred restructuring costs of $10 million in Q1 2024, down from $30 million in Q1 2023[39] - Cyber incident-related professional fees amounted to $5 million in Q1 2024, with no such costs reported in Q1 2023[44] - Internal sales decreased by 1.8%, impacted by a 300 to 400 basis points decline due to the residual effects of last year's cyber incident[6] - Equity in earnings of affiliates, net of tax, showed a slight improvement, decreasing to a loss of $3 million in Q1 2024 from a loss of $4 million in Q1 2023[44]

Wall Street analysts forecast that Henry Schein (HSIC) will report quarterly earnings of $0.99 per share in its upcoming release, pointing to a year-over-year decline of 18.2%. It is anticipated that revenues will amount to $3.23 billion, exhibiting an increase of 5.5% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior ...