Henry Schein (NASDAQ:HSIC) Issues Quarterly Earnings Results, Beats Estimates By $0.20 EPS

Henry Schein (NASDAQ:HSIC) issued its quarterly earnings results on Tuesday. The company reported $1.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.36 by $0.20, Zacks reports. The firm had revenue of $3.47 billion for the quarter, compared to analysts’ expectations of $3.48 billion. Henry Schein had a return on equity of 15.97% and a net margin of 2.96%. The firm’s revenue for the quarter was up 4.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.38 EPS.

Here are the key takeaways from Henry Schein’s conference call:

• U.S. dental merchandise sales rose 8.6%, including 7% internal local-currency growth, driven primarily by volume and claimed market-share gains among private practices and emerging DSOs.
• Adjusted non-GAAP diluted EPS increased 19.1% to $1.37, while non-GAAP operating margin expanded 20 basis points to 8.03%; management said its value-creation program remains on track to deliver more than $200 million of operating-income improvement, including a $125 million run rate by year-end 2026.
• Henry Schein raised 2026 non-GAAP EPS guidance to $5.50-$5.56 from $5.29-$5.39 and expects adjusted EBITDA growth in the high single digits, citing stronger underlying performance and a $0.19-per-share tariff-refund benefit.
• Management plans targeted fourth-quarter investments in customer acquisition, share of wallet, company-owned and exclusive products, and cloud-based practice-management software, while continuing share repurchases; it bought back $125 million of stock in the quarter and had approximately $330 million remaining under authorization.
• The U.S. dental market and patient traffic were described as stable, but discretionary procedures showed some pressure from out-of-pocket costs; medical growth was also restrained by weaker point-of-care diagnostic and flu/COVID vaccine demand, partly offset by 11.4% growth in Home Solutions.

Henry Schein Price Performance

Shares of Henry Schein stock traded down $1.83 during trading on Tuesday, reaching $84.79. The company’s stock had a trading volume of 309,883 shares, compared to its average volume of 1,318,688. The business has a 50 day moving average price of $86.49 and a 200-day moving average price of $81.15. Henry Schein has a 12-month low of $68.00 and a 12-month high of $92.18. The company has a market capitalization of $9.45 billion, a P/E ratio of 24.67, a price-to-earnings-growth ratio of 1.53 and a beta of 0.84. The company has a quick ratio of 0.73, a current ratio of 1.32 and a debt-to-equity ratio of 0.60.

Analyst Ratings Changes

Several brokerages have weighed in on HSIC. Weiss Ratings upgraded Henry Schein from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, August 21st. Stifel Nicolaus set a $95.00 price objective on shares of Henry Schein in a research report on Wednesday, August 5th. BTIG Research raised their target price on shares of Henry Schein from $100.00 to $110.00 and gave the stock a “buy” rating in a research note on Wednesday, August 19th. Barclays restated an “overweight” rating and issued a $100.00 target price (up from $86.00) on shares of Henry Schein in a research note on Thursday, August 6th. Finally, Leerink Partners set a $92.00 target price on shares of Henry Schein and gave the company a “market perform” rating in a report on Wednesday, October 14th. Nine analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $93.27.

About Henry Schein

Henry Schein, Inc (NASDAQ: HSIC) is a global provider of healthcare products and services serving dental and medical professionals, as well as veterinary practices and laboratories. The company distributes consumable supplies, equipment, pharmaceuticals, vaccines, and other products used in clinical and practice-management settings.

In addition to product distribution, Henry Schein provides technology solutions and value-added services designed to support clinical workflows, electronic health records, practice management, procurement, equipment installation, and technical support.