Core Insights - Henry Schein reported quarterly earnings of $1.1 per share, missing the Zacks Consensus Estimate of $1.18 per share, and down from $1.23 per share a year ago, representing an earnings surprise of -6.78% [1] - The company posted revenues of $3.24 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.60%, and up from $3.14 billion year-over-year [2] - The stock has added about 1.2% since the beginning of the year, underperforming the S&P 500's gain of 7.6% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $1.27 on revenues of $3.27 billion, and for the current fiscal year, it is $4.85 on revenues of $12.96 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 24% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of 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]

Financial Performance - Q2 2025 - Total sales increased by 3.3% to $3.24 billion[18, 54], with constant currency growth of 2.7%[15, 19, 22] - Non-GAAP diluted EPS was $1.10, a decrease of 10.6% compared to $1.23 in Q2 2024[15, 18, 54] - Adjusted EBITDA was $256 million, a decrease of 4.8% compared to $268 million in Q2 2024[15, 18, 57] - Global Distribution and Value-Added Services Group sales grew by 2.4% in constant currency[15, 22] - Global Specialty Products Group sales grew by 3.3%[15, 22] - Global Technology Group sales grew by 6.6%[15, 22] Segment Performance - U S dental merchandise sales decreased 1.2%[22] - International dental merchandise constant currency sales grew 0.5%[22] - U S Medical sales grew 6.3% including acquisitions[22] Guidance and Strategy - The company maintains 2025 non-GAAP diluted EPS guidance of $4.80 to $4.94[12, 46, 48] - 2025 Adjusted EBITDA is expected to grow in the mid-single digits versus 2024 Adjusted EBITDA of $1.1 billion[46] - Total sales growth for 2025 is projected to be between 2% and 4%[12, 48]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Henry Schein reported **3.3%** Q2 2025 net sales growth to **$3.2 billion**, but profitability declined, with GAAP diluted EPS at **$0.70** and non-GAAP at **$1.10** Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Net Sales | $3.2 billion | $3.1 billion | +3.3% | | GAAP Diluted EPS | $0.70 | $0.80 | -12.5% | | Non-GAAP Diluted EPS | $1.10 | $1.23 | -10.6% | - The CEO noted good sales growth in the Global Distribution Group, but lower U.S. margins primarily due to reduced glove pricing and targeted sales initiatives, while Specialty Products and Technology Groups delivered strong results[4](index=4&type=chunk) - The company is partnering with KKR Capstone and two global management consulting firms to enhance distribution gross margins and increase company-wide efficiencies, expanding on its BOLD+1 strategy[4](index=4&type=chunk) - Full-year 2025 guidance is maintained, with earnings expected to be weighted towards the second half of the year, viewing 2025 as a base year for future growth[4](index=4&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) Q2 and H1 2025 saw mixed financial results, with total net sales growth driven by medical distribution and technology, but overall profitability declined [Second Quarter 2025 Results](index=1&type=section&id=Second%20Quarter%202025%20Results) Q2 2025 net sales reached **$3.2 billion**, a **3.3%** increase YoY, reflecting **1.9%** internal growth, but profitability was challenged with diluted EPS declines Q2 2025 vs. Q2 2024 Financial Summary | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Net Sales | $3.2 billion | $3.1 billion | | GAAP Net Income | $86 million | $104 million | | Non-GAAP Net Income | $135 million | $158 million | | GAAP Diluted EPS | $0.70 | $0.80 | | Non-GAAP Diluted EPS | $1.10 | $1.23 | | Adjusted EBITDA | $256 million | $268 million | [Year-to-Date 2025 Results](index=2&type=section&id=Year-to-Date%202025%20Results) For H1 2025, total net sales were **$6.4 billion**, up **1.6%**, with GAAP net income flat at **$196 million** and non-GAAP net income decreasing to **$278 million** First Half 2025 vs. First Half 2024 Financial Summary | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Net Sales | $6.4 billion | $6.3 billion | | GAAP Net Income | $196 million | $197 million | | Non-GAAP Net Income | $278 million | $301 million | | GAAP Diluted EPS | $1.58 | $1.52 | | Non-GAAP Diluted EPS | $2.25 | $2.33 | | Adjusted EBITDA | $515 million | $523 million | [Segment Performance Analysis (Q2 2025)](index=2&type=section&id=Segment%20Performance%20Analysis%20%28Q2%202025%29) Q2 saw strong sales growth in Global Medical Distribution (**6.1%**) and Global Technology (**7.4%**), while Global Dental Distribution faced U.S. pricing pressure Q2 2025 Sales Growth vs. Q2 2024 | Segment | As-Reported Growth | Constant Currency Growth | | :--- | :--- | :--- | | Global Distribution & Value-Added Services | +2.9% | +2.4% | | Global Specialty Products | +4.2% | +3.3% | | Global Technology | +7.4% | +6.6% | - Global Dental Distribution merchandise sales were impacted by lower average selling prices in the U.S. due to glove pricing and sales initiatives, while equipment sales saw strong international growth offset by lower U.S. sales[8](index=8&type=chunk) - Global Medical Distribution growth was driven by increased patient traffic, strong performance in the home solutions business, and contributions from acquisitions[8](index=8&type=chunk) - Global Technology sales growth was fueled by strong demand for practice management systems, including cloud-based solutions like Dentrix Ascend and Dentally[8](index=8&type=chunk) [Corporate Developments & Strategy](index=3&type=section&id=Corporate%20Developments%20%26%20Strategy) The company is pursuing a restructuring plan for over **$100 million** in annual savings by year-end 2025 and repurchased **$259 million** in shares [Restructuring Plan](index=3&type=section&id=Restructuring%20Plan) In Q2 2025, **$23 million** in restructuring costs were recorded, with the plan expected to yield over **$100 million** in annual run-rate savings by year-end 2025 - The company recorded **$23 million** in restructuring costs during Q2 2025[9](index=9&type=chunk) - The current plan is expected to achieve annual run-rate savings of over **$100 million** by the end of 2025[9](index=9&type=chunk) [Share Repurchases](index=3&type=section&id=Share%20Repurchases) Henry Schein repurchased approximately **3.7 million** shares for **$259 million** in Q2 2025, including an ASR plan, with **$432 million** remaining authorized Q2 2025 Share Repurchase Activity | Program | Shares Repurchased (approx.) | Average Price | Total Cost | | :--- | :--- | :--- | :--- | | ASR Plan | 3.1 million | $71.60 | $223 million | | Open Market | 0.5 million | $67.36 | $36 million | | **Total** | **3.7 million** | **$70.88** | **$259 million** | - At the end of Q2 2025, the company had **$432 million** authorized and available for future stock repurchases, plus an additional **$27 million** under the ASR plan[12](index=12&type=chunk) [2025 Financial Guidance](index=3&type=section&id=2025%20Financial%20Guidance) Henry Schein maintained its full-year 2025 guidance, projecting non-GAAP diluted EPS between **$4.80** and **$4.94** (1% to 4% growth) and **2% to 4%** total sales growth Full-Year 2025 Guidance | Metric | Guidance Range / Growth | | :--- | :--- | | Non-GAAP Diluted EPS | $4.80 to $4.94 (1% to 4% growth) | | Total Sales Growth | 2% to 4% over 2024 | | Adjusted EBITDA Growth | Mid-single digits vs. 2024 | - Guidance is for current continuing operations and closed acquisitions, and excludes the impact of restructuring expenses, amortization of acquired intangible assets, and other specified items[13](index=13&type=chunk) - The company is not providing a reconciliation of its 2025 non-GAAP guidance to projected GAAP results due to the uncertainty and difficulty of predicting certain excluded items, such as restructuring costs[16](index=16&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the three and six months ended June 28, 2025, detailing financial position and performance [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2025 net sales were **$3.24 billion** and net income **$86 million**, a decline from Q2 2024, driven by lower gross profit and increased restructuring costs Income Statement Highlights (Q2 2025 vs. Q2 2024) | Line Item (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net sales | $3,240 | $3,136 | | Gross profit | $1,016 | $1,018 | | Operating income | $151 | $159 | | Net income attributable to Henry Schein, Inc. | $86 | $104 | | Diluted EPS | $0.70 | $0.80 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2025, total assets were **$10.91 billion** and total liabilities **$6.01 billion**, reflecting increases in receivables, inventories, goodwill, and long-term debt Balance Sheet Highlights (in millions) | Line Item | June 28, 2025 | Dec 28, 2024 | | :--- | :--- | :--- | | Total current assets | $4,243 | $3,983 | | Total assets | $10,906 | $10,218 | | Total current liabilities | $3,007 | $2,803 | | Total liabilities | $6,007 | $5,381 | | Total stockholders' equity | $4,088 | $4,031 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 net cash from operations was **$157 million**, a significant decrease from **$493 million** in H1 2024, primarily due to working capital changes Cash Flow Highlights - Six Months Ended (in millions) | Line Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $157 | $493 | | Net cash used in investing activities | ($197) | ($281) | | Net cash provided by (used in) financing activities | $145 | ($265) | | Net change in cash and cash equivalents | $23 | ($33) | [Supplemental Information & Reconciliations](index=10&type=section&id=Supplemental%20Information%20%26%20Reconciliations) This section provides detailed supplemental schedules (Exhibits A, B, and C) that break down sales growth by segment and geography, and reconcile GAAP financial results to non-GAAP measures, offering greater clarity on the company's underlying performance [Sales Summary (Exhibit A)](index=10&type=section&id=Sales%20Summary%20%28Exhibit%20A%29) Exhibit A details Q2 and H1 2025 sales, showing **3.3%** total global growth in Q2, with strong International Dental Equipment and Global Medical, but U.S. Dental declined Q2 2025 Total Sales Growth vs. Q2 2024 | Segment | Total Sales Growth | | :--- | :--- | | Global Dental | 1.1% | | Global Medical | 6.1% | | Global Specialty Products | 4.2% | | Global Technology | 7.4% | | **Total Global** | **3.3%** | YTD 2025 Total Sales Growth vs. YTD 2024 | Segment | Total Sales Growth | | :--- | :--- | | Global Dental | -0.9% | | Global Medical | 4.4% | | Global Specialty Products | 3.1% | | Global Technology | 5.1% | | **Total Global** | **1.6%** | [Reconciliation of GAAP to Non-GAAP Measures (Exhibit B)](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures%20%28Exhibit%20B%29) Exhibit B reconciles Q2 2025 GAAP net income of **$86 million** to non-GAAP net income of **$135 million**, adjusting for restructuring costs and intangible amortization Q2 2025 GAAP to Non-GAAP Reconciliation (in millions) | Line Item | Amount | | :--- | :--- | | GAAP Net Income | $86 | | Restructuring costs | $16 | | Acquisition intangible amortization | $27 | | Other adjustments | $6 | | **Non-GAAP Net Income** | **$135** | - Major non-GAAP adjustments for Q2 2025 included restructuring costs, acquisition intangible amortization, costs associated with shareholder advisory matters, and litigation settlements[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) [Reconciliation of GAAP Net Income to Adjusted EBITDA (Exhibit C)](index=14&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20to%20Adjusted%20EBITDA%20%28Exhibit%20C%29) This exhibit reconciles Q2 2025 GAAP net income of **$94 million** to Adjusted EBITDA of **$256 million**, adjusting for interest, taxes, depreciation, and amortization Q2 2025 GAAP Net Income to Adjusted EBITDA Reconciliation (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (GAAP) | $94 | $105 | | Definitional & Non-GAAP adjustments | $162 | $163 | | **Adjusted EBITDA (non-GAAP)** | **$256** | **$268** | [Legal Disclosures](index=5&type=section&id=Legal%20Disclosures) This section includes a "Safe Harbor" statement on forward-looking statements and explains the use of non-GAAP financial measures for supplemental investor information - The report contains forward-looking statements subject to risks and uncertainties, which are not guarantees of future performance, identifiable by terms like "expect," "believe," "plan," etc[24](index=24&type=chunk)[25](index=25&type=chunk) - Key risk factors that could cause actual results to differ include dependence on third-party suppliers, competitive market pressures, cyberattacks, economic conditions, and regulatory changes[26](index=26&type=chunk) - Non-GAAP financial measures are used to supplement GAAP results, enabling comparison between periods by excluding certain items that may vary independent of business performance[28](index=28&type=chunk)[29](index=29&type=chunk)

Group 1 - The article discusses a bullish perspective on Henry Schein, identified as the world's largest provider of healthcare products and services for office-based dental and medical practitioners [1] - The focus is on the potential for value and growth in companies that generate cash flow, particularly in the oil and natural gas sector [1] Group 2 - The investment service offers subscribers access to a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2] - Subscribers can engage in live chat discussions about the oil and gas sector, enhancing their understanding and investment strategies [2] - A promotional offer for a two-week free trial is available, encouraging new users to explore the oil and gas investment opportunities [3]

Henry Schein (HSIC) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectati ...

Core Viewpoint - Henry Schein, Inc. (HSIC) is set to release its second-quarter 2025 results on August 5, with expectations of revenue growth but a slight 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 $3.22 billion, indicating a year-over-year increase of 2.7% [2]. - The Zacks Consensus Estimate for EPS is $1.18, reflecting a year-over-year decrease of 4.1% [2]. - Estimates for second-quarter earnings have decreased by 1 cent to $1.18 over the past 30 days [3]. Group 2: Performance Factors - The Global Distribution and Value-Added Services segment is expected to have stable conditions in U.S. and international dental merchandise and equipment markets, with potential market share gains [4]. - U.S. dental merchandise sales are anticipated to be driven by volume growth, while dental equipment sales faced challenges due to a sales deferral from the previous quarter [5]. - The U.S. medical business is likely to benefit from strong performance in the Home Solutions sector and growth from acquisitions [6]. Group 3: International Sales and New Products - International dental merchandise sales are expected to remain strong in Canada, Central Europe, and Brazil, although softness in France may offset some growth [7]. - New products introduced at the 2025 International Dental Show, such as 3D printers and intraoral scanners, may contribute positively to sales [7]. Group 4: Segment Revenue Projections - The Global Distribution and Value-Added Services segment's revenues are projected to increase by 0.3%, reaching $2.67 billion [8]. - The Global Specialty Products segment is expected to see a 2% increase in revenues, driven by TriMed and implant sales in Europe [9][11]. - The Global Technology segment is anticipated to experience a 2.4% year-over-year improvement in revenues, supported by growth in cloud-based practice management software [12].

Financial Performance & Guidance - Henry Schein reported FY2022 global net sales of $12.6 billion[8] - In Q1, GAAP diluted EPS was $0.91, and non-GAAP diluted EPS was $1.21[14] - Total sales growth was -3.8% (LCI -3.7%), but excluding PPE & COVID-19 Test Kits, LCI sales growth was strong at 6.3%[18] - EPS was negatively impacted by an estimated $0.24 due to lower contribution from PPE products and COVID-19 Test Kits, $0.04 from acquisition-related expenses, and $0.02 from foreign exchange[18] Henry Schein One & Dental Technology Market - Henry Schein One's 2022 revenue from dental practice management was approximately $550 million[20, 21] - The estimated dental technology market size is $2.3 billion, with an estimated market growth rate of 8-12%[26] - Henry Schein One has 100,000 active dental customers[26] Strategic Priorities & Market Trends - Henry Schein's strategic priorities include building complementary software, specialty, and services, operationalizing One Distribution, leveraging One Schein, and driving digital transformation[9] - Industry trends driving demand for Henry Schein One solutions include payment & claims innovation (72% of dentists are concerned with declining insurance reimbursement rates), AI & clinical decision support, customer dynamics (consumerization of healthcare), and dental practice consolidation[29, 30]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score emphasizes a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price changes and monthly earnings estimate changes to identify optimal buying times [5] VGM Score - The VGM Score combines the three Style Scores to highlight companies with the best value, growth forecasts, and momentum, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, aiding investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] Stock to Watch: Henry Schein Inc. - Henry Schein Inc. is a leading global distributor of healthcare products and services, operating in 33 countries and serving various healthcare practitioners [11] - Currently rated 3 (Hold) on the Zacks Rank, Henry Schein has a VGM Score of A and a Value Style Score of A, with a forward P/E ratio of 15.06, indicating attractive valuation metrics [11][12] - The company has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate increasing by $0.02 to $4.86 per share for fiscal 2025, and an average earnings surprise of 2.4% [12]

Company Overview - Henry Schein Inc. is a leading distributor of health care products and services globally, serving various practitioners including dental, medical, and animal health sectors, as well as government and institutional health care clinics [11] - The company operates in 33 countries [11] Investment Ratings - Henry Schein is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating a solid overall performance [11] - The Growth Style Score for HSIC is B, forecasting a year-over-year earnings growth of 2.5% for the current fiscal year [12] Earnings Estimates - In the last 60 days, five analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.02 to $4.86 per share [12] - HSIC has an average earnings surprise of 2.4%, suggesting a history of exceeding earnings expectations [12] Investment Potential - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Henry Schein is positioned as a potential top pick for growth investors [12]

Group 1 - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market over the next 30 days, based on three investment methodologies [2][3] Group 2 - Stocks are rated with an alphabetic system from A to F, where A indicates the highest potential for outperformance, and the Style Scores are categorized into Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] - The Value Score focuses on identifying undervalued stocks using various financial ratios, while the Growth Score emphasizes a company's financial health and future growth potential [3][4] - The Momentum Score assesses stocks based on price trends and earnings outlook, and the VGM Score combines all three styles to identify stocks with the best overall potential [5][6] Group 3 - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns, while stocks with lower ranks should be approached cautiously [9][10] Group 4 - Henry Schein Inc. is a leading global distributor of healthcare products and services, operating in 33 countries and serving various healthcare practitioners [11] - Currently rated 3 (Hold) by Zacks, Henry Schein has a VGM Score of A and a Growth Style Score of B, with a projected year-over-year earnings growth of 2.5% for the current fiscal year [11][12] - Recent upward revisions in earnings estimates and a solid earnings surprise average of 2.4% position Henry Schein as a potential growth investment [12]