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Why Is Henry Schein (HSIC) Up 5.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Henry Schein (HSIC - Free Report) . Shares have added about 5.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Henry Schein due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Henry Schein (HSIC - Free Report) Q2 Earnings Surpass, 2024 Guidance Down
Henry Schein, Inc. registered adjusted earnings per share (EPS) of $1.23 in the second quarter of 2024, down 6.1% from the year-ago period’s adjusted EPS. However, the metric exceeded the Zacks Consensus Estimate by 0.8%.
Revenues in Detail
Henry Schein reported net sales of $3.14 billion in the second quarter, up 1.2% year over year. The metric lagged the Zacks Consensus Estimate by 4.3%.
The year-over-year upside reflects an internal sales decline of 2.4%.
On a geographic basis, the company recorded sales of $2.29 billion in North America, up 1% year over year. However, the figure missed our model’s projection of $2.38 billion.
Sales totaled $851 million in the International market, up 1.5% year over year. Our model projected sales to be $899.4 million.
Segmental Analysis
Henry Schein derives revenues from two operating segments — Health Care Distribution (includes the global Dental and Medical businesses), and Technology and Value-Added Services.
In the second quarter, the company recorded $1.92 billion in global Dental sales, down 1.7% year over year. Our model projected $2 billion in sales.
Global Medical revenues improved 5% year over year to $998 million. Our model’s projection was $1.07 billion.
Revenues from global Technology and Value-Added Services rose 10.8% to $214 million. Our model projected $209.4 million revenues for this segment.
Margin Trend
The gross profit totaled $1.02 billion, reflecting a 4.4% increase year over year. The gross margin expanded 101 basis points (bps) to 32.5% due to a 0.3% decline in the cost of sales.
SG&A expenses rose 10.5% to $781 million in the quarter under review. The adjusted operating profit totaled $237 million compared with $268 million in the year-ago period. Meanwhile, the adjusted operating margin contracted 109 bps year over year to 7.6%.
Liquidity Position
Henry Schein exited the second quarter of 2024 with cash and cash equivalents of $138 million compared with $159 million at the end of the first quarter.
Cumulative net cash provided by operating activities at the end of the second quarter was $493 million compared with the year-ago figure of $301 million.
During the quarter, HSIC repurchased nearly 1.4 million shares of its common stock at an average price of $70.64 per share for a total of approximately $100 million.
2024 Guidance
Henry Schein provided an updated financial outlook for 2024. The guidance assumes that present foreign currency exchange rates will generally prevail and end markets will remain consistent with current market conditions.
For 2024, the company expects adjusted EPS to be in the range of $4.70-$4.82 (previously $5.00-$5.16). The revised figure reflects 4-7% growth from the 2023 reported number. The Zacks Consensus Estimate for the metric is currently pegged at $5.07.
Henry Schein expects 2024 sales growth of nearly 4-6% (previously 8-10%) from the 2023 reported figure. The Zacks Consensus Estimate for revenues is currently pegged at $13.32 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -14.79% due to these changes.
VGM Scores
At this time, Henry Schein has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Henry Schein has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Henry Schein belongs to the Zacks Medical - Dental Supplies industry. Another stock from the same industry, Merit Medical (MMSI - Free Report) , has gained 8.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Merit Medical reported revenues of $338 million in the last reported quarter, representing a year-over-year change of +5.6%. EPS of $0.92 for the same period compares with $0.81 a year ago.
Merit Medical is expected to post earnings of $0.80 per share for the current quarter, representing a year-over-year change of +6.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
Merit Medical has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is Henry Schein (HSIC) Up 5.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Henry Schein (HSIC - Free Report) . Shares have added about 5.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Henry Schein due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Henry Schein (HSIC - Free Report) Q2 Earnings Surpass, 2024 Guidance Down
Henry Schein, Inc. registered adjusted earnings per share (EPS) of $1.23 in the second quarter of 2024, down 6.1% from the year-ago period’s adjusted EPS. However, the metric exceeded the Zacks Consensus Estimate by 0.8%.
Revenues in Detail
Henry Schein reported net sales of $3.14 billion in the second quarter, up 1.2% year over year. The metric lagged the Zacks Consensus Estimate by 4.3%.
The year-over-year upside reflects an internal sales decline of 2.4%.
On a geographic basis, the company recorded sales of $2.29 billion in North America, up 1% year over year. However, the figure missed our model’s projection of $2.38 billion.
Sales totaled $851 million in the International market, up 1.5% year over year. Our model projected sales to be $899.4 million.
Segmental Analysis
Henry Schein derives revenues from two operating segments — Health Care Distribution (includes the global Dental and Medical businesses), and Technology and Value-Added Services.
In the second quarter, the company recorded $1.92 billion in global Dental sales, down 1.7% year over year. Our model projected $2 billion in sales.
Global Medical revenues improved 5% year over year to $998 million. Our model’s projection was $1.07 billion.
Revenues from global Technology and Value-Added Services rose 10.8% to $214 million. Our model projected $209.4 million revenues for this segment.
Margin Trend
The gross profit totaled $1.02 billion, reflecting a 4.4% increase year over year. The gross margin expanded 101 basis points (bps) to 32.5% due to a 0.3% decline in the cost of sales.
SG&A expenses rose 10.5% to $781 million in the quarter under review. The adjusted operating profit totaled $237 million compared with $268 million in the year-ago period. Meanwhile, the adjusted operating margin contracted 109 bps year over year to 7.6%.
Liquidity Position
Henry Schein exited the second quarter of 2024 with cash and cash equivalents of $138 million compared with $159 million at the end of the first quarter.
Cumulative net cash provided by operating activities at the end of the second quarter was $493 million compared with the year-ago figure of $301 million.
During the quarter, HSIC repurchased nearly 1.4 million shares of its common stock at an average price of $70.64 per share for a total of approximately $100 million.
2024 Guidance
Henry Schein provided an updated financial outlook for 2024. The guidance assumes that present foreign currency exchange rates will generally prevail and end markets will remain consistent with current market conditions.
For 2024, the company expects adjusted EPS to be in the range of $4.70-$4.82 (previously $5.00-$5.16). The revised figure reflects 4-7% growth from the 2023 reported number. The Zacks Consensus Estimate for the metric is currently pegged at $5.07.
Henry Schein expects 2024 sales growth of nearly 4-6% (previously 8-10%) from the 2023 reported figure. The Zacks Consensus Estimate for revenues is currently pegged at $13.32 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -14.79% due to these changes.
VGM Scores
At this time, Henry Schein has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Henry Schein has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Henry Schein belongs to the Zacks Medical - Dental Supplies industry. Another stock from the same industry, Merit Medical (MMSI - Free Report) , has gained 8.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Merit Medical reported revenues of $338 million in the last reported quarter, representing a year-over-year change of +5.6%. EPS of $0.92 for the same period compares with $0.81 a year ago.
Merit Medical is expected to post earnings of $0.80 per share for the current quarter, representing a year-over-year change of +6.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
Merit Medical has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.