Henry Schein, Inc. HSIC is scheduled to release first-quarter 2025 results on May 5, before the opening bell.
In the last reported quarter, the company posted adjusted earnings per share (EPS) of $1.19, which was on par with the Zacks Consensus Estimate. Henry Schein’s earnings surpassed estimates in three of the trailing four quarters and matched once, delivering an average surprise of 4.28%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).
HSIC’s Q1 Estimates
The Zacks Consensus Estimate for revenues is pegged at $3.23 billion, which suggests an increase of 1.8% from the year-ago reported figure.
The Zacks Consensus Estimate for EPS is pinned at $1.11, which indicates a year-over-year increase of 0.9%.
Estimate Revision Trend Ahead of HSIC’s Q1 Earnings
Estimates for earnings have remained unchanged at $1.11 per share in the past 30 days.
Let’s see how the healthcare product and service distributor’s developments might influence the upcoming results.
Factors at Play
Distribution and Value-Added Services
The company is expected to have sustained the recovery momentum from last year’s cybersecurity incident, which mainly affected the dental and medical distribution businesses in the United States and Europe.
The dental distribution businesses are expected to have witnessed continued stable patient traffic globally. During the fourth quarter, revenues increased internationally in the dental merchandise arena, reflecting strong growth in Canada, Europe and Brazil, and slightly softer growth in Australia, New Zealand and Asia. We expect this trend to have continued in the to-be-reported quarter.
In the United States, Dental equipment sales are likely to have been flat sequentially. Internationally, equipment sales are also expected to have increased due to solid growth in traditional equipment.
The Home Solutions business likely performed well. In line with this, during the first quarter, the company completed the acquisition of Acentus, a national medical supplier that specializes in delivering Continuous Glucose Monitors (CGMs). The acquisition expands Henry Schein’s ability within the homecare medical supplies space. We expect this acquisition to have had a positive impact on the company’s revenues in the to-be-reported quarter.
Within the medical distribution business, in the United States, sales growth was negatively impacted by lower sales of vaccines, PPE products and COVID test kits. This might have hurt Henry Schein’s medical distribution sales in the first quarter.
However, in March, the company entered into a collaboration with DoctorLogic, a digital marketing service and website platform for healthcare practices. The same month, Henry Schein acquired R. Weinstein, Inc., a provider of vaccines, medical-surgical products, and equipment to Hawaii-based healthcare facilities and practitioners. We expect these developments to have boosted the first-quarter top line.
In the fourth quarter, global value-added service sales grew in high single digit, backed by strong sales growth in e-Assist and financial services. We expect this trend to have sustained in the to-be-reported quarter as well.
Per our model estimates, Henry Schein’s global Distribution and Value-Added Services segment’s revenues should be $2.68 billion for the first quarter, suggesting a 0.4% decline year over year.
Specialty Products
Within the segment, dental implant and biomaterial sales as well as endodontic sales might have improved in the first quarter, with continued above-market growth in the United States and Europe.
Henry Schein, Inc. Price and EPS Surprise
Henry Schein, Inc. Price and EPS Surprise
Henry Schein, Inc. price-eps-surprise | Henry Schein, Inc. Quote
Also, in the United States, we expect sales growth aided by a new product line — Tapered Pro Conical implant. The S.I.N. product line is also expected to have delivered solid growth in the first quarter.
However, the company is in the process of restructuring the orthodontic business, which might have caused a decline in orthodontic sales.
Per our model estimates, Henry Schein’s global Specialty Products segment’s revenues should be $385.9 million for the first quarter, suggesting a 7.2% improvement year over year.
Technology
Similar to the previous several quarters, the segment might have continued to be driven by its largest component, Henry Schein One. The customer base for the Dentrix Ascend and Dentally cloud-based solutions is likely to have increased. It posted 6.5% year-over-year growth in the fourth quarter. Additionally, the practice management software and revenue cycle management products are likely to have put up a strong performance.
Per our model estimates, the segment’s revenues should be $160.8 million for the quarter, suggesting a 2.4% improvement year over year.
What Our Model Suggests for HSIC
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating on earnings, which is exactly the case here.
Earnings ESP: Henry Schein has an Earnings ESP of +1.89%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3 (Hold).
Other Stocks Worth a Look
Here are some other medical stocks worth considering, as these, too, have the right combination of elements to post an earnings beat this reporting cycle:
Masimo MASI has an Earnings ESP of +0.64% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to release first-quarter 2025 results on May 6.
MASI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.41%. The Zacks Consensus Estimate for first-quarter EPS implies a year-over-year increase of 61%.
Veeva Systems VEEV has an Earnings ESP of +0.17% and a Zacks Rank #1 at present. The company is expected to release first-quarter fiscal 2026 results shortly.
The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.92%. The Zacks Consensus Estimate for first-quarter EPS implies a year-over-year increase of 16%.
Hims & Hers Health HIMS has an Earnings ESP of +115.69% and a Zacks Rank #2 at present. The company is slated to release first-quarter 2025 results on May 5, 2025.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 40.42%. The Zacks Consensus Estimate for Hims & Hers Health’s first-quarter EPS suggests a year-over-year improvement of 180%.
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