Henry Schein(US:HSIC) ZACKS·2025-02-25 17:30Core Insights - Henry Schein, Inc. (HSIC) reported adjusted earnings per share (EPS) of $1.19 for Q4 2024, reflecting an 80.3% increase from the previous year's EPS of 66 cents, aligning with Zacks Consensus Estimate [1] - The company’s full-year 2024 EPS was $4.74, a 5.3% increase year-over-year, but it missed the Zacks Consensus Estimate by 0.2% [2] - HSIC's stock experienced a 1.4% decline in pre-market trading following the earnings announcement [2] Revenue Performance - HSIC reported net sales of $3.19 billion for Q4 2024, a 5.6% year-over-year increase, but fell short of the Zacks Consensus Estimate by 2.4% [3] - Full-year 2024 net sales reached $12.67 billion, up 2.7% from the prior year, yet also missed the Zacks Consensus Estimate by 0.8% [4] - Sales in the U.S. amounted to $1.86 billion, up 5.3% year-over-year, while international sales totaled $845 million, reflecting a 7.4% increase [3] Segment Analysis - The company restructured its reportable segments into three categories: Distribution and Value-Added Services, Specialty Products, and Technology [5] - Global Distribution and Value-Added Services sales were $2.70 billion, up 5.9% year-over-year [5] - Global Specialty Products revenues increased by 7.2% to $368 million, while Global Technology revenues rose by 2.4% to $160 million [6] Margin and Expenses - Gross profit for the quarter was $993 million, a 7.5% increase year-over-year, with gross margin expanding by 49 basis points to 31.1% despite a 5% rise in cost of sales [7] - Selling, General and Administrative (SG&A) expenses decreased by 8.6% to $738 million, leading to an adjusted operating profit of $255 million compared to $117 million in the previous year [7] - The adjusted operating margin improved by 411 basis points year-over-year to 8% [7] Liquidity and Cash Flow - At the end of 2024, HSIC had cash and cash equivalents of $122 million, down from $171 million at the end of 2023 [8] - Cumulative net cash from operating activities was $848 million, up from $500 million year-over-year [9] - The company repurchased approximately 1.1 million shares at an average price of $71.35, totaling around $75 million, with $380 million available for future repurchases [9] Future Guidance - For 2025, HSIC expects adjusted EPS to range from $4.80 to $4.94, indicating a growth of 1-4% from 2024 [10] - The company anticipates sales growth of nearly 2-4% compared to the previous year, with the Zacks Consensus Estimate for revenues at $13.19 billion [11] Strategic Initiatives - The implementation of the BOLD+1 Strategic Plan has led to growth and efficiency improvements within the company [12] - Under a new restructuring plan, HSIC aims for annual run-rate savings exceeding $80 million, contributing to a target of $75-$100 million in savings by the end of 2025 [13]