HSIC Gears Up for Q3 Earnings: Here's What You Need to Know

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].