Why Is Henry Schein (HSIC) Up 1.2% Since Last Earnings Report?

Core Viewpoint - Henry Schein, Inc. reported strong third-quarter earnings and raised its 2025 guidance, indicating positive momentum despite some downward estimate revisions in the market [2][12][15] Financial Performance - Adjusted EPS for Q3 2025 was $1.38, a 13.1% increase year-over-year, surpassing the Zacks Consensus Estimate by 8.7% [2] - Net sales reached $3.34 billion, reflecting a 5.4% year-over-year growth and beating the Zacks Consensus Estimate by 2% [3] - Gross profit totaled $1.03 billion, a 3.3% increase year-over-year, although gross margin contracted by 56 basis points to 30.7% due to a 6% rise in the cost of sales [8] Segment Analysis - Global Distribution and Value-Added Services sales rose 4.8% year-over-year to $2.84 billion, exceeding the forecast of $2.77 billion [4] - Global Dental Distribution merchandise sales increased by 2.9% in constant currencies, while equipment sales grew by 3.4% [5] - Global Specialty Products sales totaled $369 million, up 5.9% year-over-year, driven by strong dental implant and endodontics sales [6] - Global Technology segment sales reached $173 million, a 9.7% increase, attributed to cloud-based software adoption and new revenue cycle management solutions [7] Cost and Expenses - SG&A expenses increased by 5% to $760 million, with adjusted operating profit down 1.1% year-over-year to $266 million [9] Liquidity and Share Repurchase - Cash and cash equivalents at the end of Q3 were $136 million, down from $145 million in Q2, with cumulative net cash from operating activities at $331 million, significantly lower than the previous year's $644 million [10] - The company repurchased approximately 3.3 million shares at an average price of $68.62, totaling around $229 million, with $980 million authorized for future repurchases [11] Updated Guidance - The full-year 2025 adjusted EPS forecast was raised to a range of $4.88 to $4.96, with projected revenue growth increased to 3-4% [12] Market Position and Estimates - Despite strong performance, estimates have trended downward recently, leading to a Zacks Rank 3 (Hold) for the stock [13][15] - Henry Schein's VGM Score is C, with a subpar Growth Score of D and a better Momentum Score of C, indicating mixed investor sentiment [14]