Henry Schein Q4 Earnings And Outlook Miss Expectations, Restructures For Growth

On Tuesday, Henry Schein Inc. HSIC reported a fourth-quarter adjusted EPS of $1.19, up 80.3% year-over-year, missing the consensus of $1.21.

Sales were $3.19 billion, an increase of 5.8%, missing the consensus of $3.30 billion.

Sales growth reflects 5.5% internal sales growth, 0.7% sales growth from acquisitions, and a 0.4% sales decrease resulting from foreign currency exchange. Excluding the impact of personal protective equipment (PPE) and COVID test kits, internal sales growth was 6.6%.

Also Read: What Does Dental Player Patterson’s $4.1 Billion Deal Mean For Other Players?

"Our fourth quarter financial results reflect relatively stable dental and medical end-markets. We continued to make progress on our 2022 to 2024 BOLD+1 Strategic Plan which we recently completed, exceeding our 2024 target of generating 40% of our worldwide operating income from high-growth, high-margin businesses," said Stanley Bergman, chairman and CEO of Henry Schein.

As part of the new strategy, the company has restructured its organization into three segments:

• Global Distribution and Value-Added Services ($10.8 billion in sales)
• Global Specialty Products ($1.4 billion in sales)
• Global Technology ($630 million in sales)

According to William Blair, it is “difficult to get an initial read on which segments underperformed.”

The firm’s analysts assume continued weakness in dental end-markets weighed on the dental segment, “especially for equipment and to some degree maybe even merchandise.”

Guidance: Henry Schein forecasts 2025 adjusted EPS of $4.80-$4.94 versus a consensus of $5.01. The company also expects sales growth of approximately 2%-4% over 2024.

Analyst Brandon Vazquez notes that the company’s 2025 outlook is slightly below Wall Street expectations, likely due to stable but weak market demand and spending on future growth, such as a new e-commerce site, which could temporarily impact profit margins.

Price Action: At last check on Tuesday, HSIC stock was down 3.91% at $74.61.

Read Next:

• Trip.com Shares Drop Despite Strong Q4 Earnings and Record Travel Demand: Details

Image: Shutterstock