Henry Schein(HSIC) ZACKS·2024-06-06 16:26Company Overview - Henry Schein Inc. (HSIC) is well positioned due to its extensive global presence and diverse distribution channels, although macroeconomic concerns are negatively impacting its operational results [1][5] - The company has strategically established distribution centers worldwide, enhancing customer service and operational efficiency, with a presence in North America, Australia, New Zealand, and emerging markets like China, Brazil, Israel, the Czech Republic, and Poland [2] Business Segments - In the Dental business, Henry Schein focuses on delivering customized solutions by leveraging market insights and technological advancements, while also selling cost-effective consumable products and manufacturing dental specialty products [3] - The company is optimistic about its dental technology joint venture, Henry Schein One, which is driving significant gains in core products such as practice management software and AI solutions [4] Financial Performance - The current macroeconomic environment, including exchange rate fluctuations, inflation, and recession, is adversely affecting Henry Schein's financial operations, leading to a 10.3% increase in selling, general, and administrative expenses in the first quarter compared to the previous year [5] - In the first quarter of 2024, the company's Technology and Value-Added service sales grew by 13.8% year-over-year, with North American growth driven by value-added services and international growth led by dental cloud-based solutions [10] Market Position - Henry Schein is experiencing consistent demand for its implant systems, endodontic products, and integrated software solutions, and is gaining market share in the Global Dental specialties market through acquisitions [11] - However, the company faced a decline in fourth-quarter 2023 sales by an estimated $350 million-$400 million due to a cybersecurity incident, which also impacted operating income by approximately $120 million-$130 million [12]