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What's in the Cards for Henry Schein (HSIC) in Q4 Earnings?
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Henry Schein, Inc. (HSIC - Free Report) is slated to report fourth-quarter 2021 results on Feb 15, before market open.
In the last reported quarter, the company’s earnings of $1.10 surpassed the Zacks Consensus Estimate by 17%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 21.86%.
Let’s see how things have shaped up prior to this announcement.
Factors to Note
Dental Business
Per Henry Schein’s third-quarter 2021 earnings update, the company has been witnessing robust demand in the global dental market on the gradual reopening of practices and stable patient traffic over the past few months, even in countries with more stringent lockdown rules. In the United States, the most recent American Dental Association data shows that patient traffic is currently at about 90% of the pre-pandemic level. This recovery trend is likely to have continued through the entire fourth quarter, thus boosting the company’s top line.
In December 2021, Henry Schein Orthodontics, the orthodontics business of Henry Schein, launched Studio Pro 4.0, a new web-based treatment planning software for Reveal Clear Aligners that enables practitioners to meet the clear aligner needs of their patients. We expect this development to have contributed significantly to the company’s revenues in the to-be-reported quarter on strong customer adoption.
Further, Henry Schein, during the last quarter earnings update, noted that the company has launched its Progressive Conelog implants with multiunit prosthetics addressing the full market in North America. This development is expected to have contributed to the company’s top line.
The Zacks Consensus Estimate for the company’s fourth-quarter global Dental business revenues is pegged at $1.96 billion, suggesting a rise of 6.3% from the year-ago quarter’s reported figure.
Medical Business
Henry Schein’s medical business is expected to have seen demand for its Personal Protective Equipment (PPE) and COVID-related products amid the surge in the new Omicron variant. In terms of COVID-19 test sales, Henry Schein is likely to have witnessed higher COVID-19 testing demand with the resurgences through the fourth quarter. We believe this increase in demand to have contributed significantly to the company fourth-quarter revenues.
The company, during its third-quarter 2021 earnings call, reported improvement in trends in the physician, ambulatory, surgery center, alternate care, and home care markets along with growth in demand for medical-surgical equipment and laboratory product sales backed by the normalization of the economy. However, Henry Schein might have witnessed lower pharmaceutical sales related to fewer patient office visits with the surge in Omicron variant cases and deferral of elective procedures through the fourth quarter. This is likely to have impacted the company’s medical business.
The Zacks Consensus Estimate for fourth-quarter global Medical business revenues is pegged at $1.06 billion, suggesting a decline of 9.73% from the year-ago quarter’s reported figure.
Technology and Value-Added Services Business
During the last quarter earnings update, Henry Schein witnessed growth in Dentrix Ascend Cloud Solutions' business. The company also noted that its Dentrix Ascend Cloud solution is now a subscription-based software and is witnessing huge adoption by small customers, midsized customers, with some of the larger DSOs as well. We believe Henry Schein has witnessed strong customer adoption through the fourth quarter, thus boosting the top line.
Like the third quarter, the business is expected to have witnessed an uptick in internal sales on the back of Henry Schein One business with particular strength in software excellence business driven by the market reopening in the U.K.
As of now, the Zacks Consensus Estimate for the company’s fourth-quarter global Technology and Valued-Added Services business revenues is pegged at $156 million, suggesting an improvement of 13% from the year-ago quarter’s reported figure.
The Estimate Picture
For fourth-quarter 2021, the Zacks Consensus Estimate for total revenues of $3.18 billion implies an improvement of 0.6% from the prior-year quarter’s reported figure.
The consensus estimate for earnings per share is pegged at 90 cents, indicating a decline of 10% from the prior-year quarter’s reported figure.
What Our Model Suggests
Our proven model predicts an earnings beat for Henry Schein this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Henry Schein has an Earnings ESP of +0.83%. 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 #2.
Other Stocks Worth a Look
Here are a few other stocks worth considering, as these also have the right combination of elements to beat on earnings this reporting cycle.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 6.5% compares favorably with the industry’s 0.9%.
Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) has an Earnings ESP of +10.11% and a Zacks Rank of #2. Allscripts will release fourth quarter and full-year 2021 results on Feb 24.
Allscripts’ long-term earnings growth rate is estimated at 11.1%. MDRX’s earnings yield of 5% compares favorably with the industry’s (4.9%).
Eagle Pharmaceuticals (EGRX - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank of 1.
Eagle Pharmaceuticals’s next year earnings growth rate is estimated at 171.2%. EGRX’s earnings yield of 15.78% compares favorably with the industry’s (0.2%).
Image: Bigstock
What's in the Cards for Henry Schein (HSIC) in Q4 Earnings?
Henry Schein, Inc. (HSIC - Free Report) is slated to report fourth-quarter 2021 results on Feb 15, before market open.
In the last reported quarter, the company’s earnings of $1.10 surpassed the Zacks Consensus Estimate by 17%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 21.86%.
Let’s see how things have shaped up prior to this announcement.
Factors to Note
Dental Business
Per Henry Schein’s third-quarter 2021 earnings update, the company has been witnessing robust demand in the global dental market on the gradual reopening of practices and stable patient traffic over the past few months, even in countries with more stringent lockdown rules. In the United States, the most recent American Dental Association data shows that patient traffic is currently at about 90% of the pre-pandemic level. This recovery trend is likely to have continued through the entire fourth quarter, thus boosting the company’s top line.
In December 2021, Henry Schein Orthodontics, the orthodontics business of Henry Schein, launched Studio Pro 4.0, a new web-based treatment planning software for Reveal Clear Aligners that enables practitioners to meet the clear aligner needs of their patients. We expect this development to have contributed significantly to the company’s revenues in the to-be-reported quarter on strong customer adoption.
Further, Henry Schein, during the last quarter earnings update, noted that the company has launched its Progressive Conelog implants with multiunit prosthetics addressing the full market in North America. This development is expected to have contributed to the company’s top line.
The Zacks Consensus Estimate for the company’s fourth-quarter global Dental business revenues is pegged at $1.96 billion, suggesting a rise of 6.3% from the year-ago quarter’s reported figure.
Medical Business
Henry Schein’s medical business is expected to have seen demand for its Personal Protective Equipment (PPE) and COVID-related products amid the surge in the new Omicron variant. In terms of COVID-19 test sales, Henry Schein is likely to have witnessed higher COVID-19 testing demand with the resurgences through the fourth quarter. We believe this increase in demand to have contributed significantly to the company fourth-quarter revenues.
Henry Schein, Inc. Price and EPS Surprise
Henry Schein, Inc. price-eps-surprise | Henry Schein, Inc. Quote
The company, during its third-quarter 2021 earnings call, reported improvement in trends in the physician, ambulatory, surgery center, alternate care, and home care markets along with growth in demand for medical-surgical equipment and laboratory product sales backed by the normalization of the economy. However, Henry Schein might have witnessed lower pharmaceutical sales related to fewer patient office visits with the surge in Omicron variant cases and deferral of elective procedures through the fourth quarter. This is likely to have impacted the company’s medical business.
The Zacks Consensus Estimate for fourth-quarter global Medical business revenues is pegged at $1.06 billion, suggesting a decline of 9.73% from the year-ago quarter’s reported figure.
Technology and Value-Added Services Business
During the last quarter earnings update, Henry Schein witnessed growth in Dentrix Ascend Cloud Solutions' business. The company also noted that its Dentrix Ascend Cloud solution is now a subscription-based software and is witnessing huge adoption by small customers, midsized customers, with some of the larger DSOs as well. We believe Henry Schein has witnessed strong customer adoption through the fourth quarter, thus boosting the top line.
Like the third quarter, the business is expected to have witnessed an uptick in internal sales on the back of Henry Schein One business with particular strength in software excellence business driven by the market reopening in the U.K.
As of now, the Zacks Consensus Estimate for the company’s fourth-quarter global Technology and Valued-Added Services business revenues is pegged at $156 million, suggesting an improvement of 13% from the year-ago quarter’s reported figure.
The Estimate Picture
For fourth-quarter 2021, the Zacks Consensus Estimate for total revenues of $3.18 billion implies an improvement of 0.6% from the prior-year quarter’s reported figure.
The consensus estimate for earnings per share is pegged at 90 cents, indicating a decline of 10% from the prior-year quarter’s reported figure.
What Our Model Suggests
Our proven model predicts an earnings beat for Henry Schein this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Henry Schein has an Earnings ESP of +0.83%. 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 #2.
Other Stocks Worth a Look
Here are a few other stocks worth considering, as these also have the right combination of elements to beat on earnings this reporting cycle.
AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +10.29% and a Zacks Rank of #1. AMN Healthcare is slated to release fourth quarter and full-year 2021 results on Feb 17. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 6.5% compares favorably with the industry’s 0.9%.
Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) has an Earnings ESP of +10.11% and a Zacks Rank of #2. Allscripts will release fourth quarter and full-year 2021 results on Feb 24.
Allscripts’ long-term earnings growth rate is estimated at 11.1%. MDRX’s earnings yield of 5% compares favorably with the industry’s (4.9%).
Eagle Pharmaceuticals (EGRX - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank of 1.
Eagle Pharmaceuticals’s next year earnings growth rate is estimated at 171.2%. EGRX’s earnings yield of 15.78% compares favorably with the industry’s (0.2%).
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.