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In the last reported quarter, the company posted adjusted earnings per share (EPS) of $1.22, which beat the Zacks Consensus Estimate by 5.2%. In the trailing four quarters, Henry Schein’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average negative surprise of 2.85%.
HSIC’s Q4 Estimates
The Zacks Consensus Estimate for revenues is pegged at $3.26 billion, which suggests an increase of 8.0% from the year-ago reported figure.
The Zacks Consensus Estimate for EPS is pinned at $1.30, which indicates a year-over-year increase of 97%.
Estimate Revision Trend Ahead of HSIC’s Q4 Earnings
Estimates for Henry Schein’s third-quarter earnings have moved north 6.6% to $1.30 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
Health Care Distribution
The company is expected to have sustained the recovery momentum from last year’s cybersecurity incident, which might have mainly affected the dental and medical distribution businesses in North America and Europe.
The dental distribution businesses are expected to have witnessed continued stable patient traffic globally. During the third quarter, revenues increased internationally in the dental merchandise arena, reflecting solid growth in Germany, Austria, France, Brazil, Australia and New Zealand. We expect this trend to have continued in the to-be-reported quarter as well.
In North America, Dental equipment sales are likely to have been consistent with the prior year. Internationally, equipment sales are also expected to have increased due to growth in parts of Europe, Australia and New Zealand.
Within the dental specialties business, dental implant and biomaterial sales as well as endodontic sales might have improved in the fourth quarter, with continued above-market growth in the United States and Europe.
Also, in North America, we expect sales growth to have resumed, aided by a new product line — Tapered Pro Conical implant. In the third quarter, Henry Schein launched the SmartShape Healers abutment product line, which is expected to have further attracted new customers and driven implant sales in the fourth quarter.
However, the company is in the process of restricting the orthodontic business, for which it might have experienced a decline in orthodontic sales.
Per our model estimates, Henry Schein’s Health Care Distribution segment’s revenues should be $3.11 billion for the quarter, suggesting a 10.7% improvement year over year.
Technology and Value-Added Services
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, which registered more than 20% year-over-year growth in the third quarter. Additionally, the practice management software and revenue cycle management products are likely to have put up a strong performance.
The company has also gained high synergies from its recently launched Reserve with Google, Eligibility, Essentials and Eligibility Pro. These solutions are expected to have contributed favorably to HSIC’s fourth-quarter revenues.
The Home Solutions business is also expected to have performed well. In line with this, during the fourth quarter, the company entered into an agreement to acquire 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 deal to have had a positive impact on the company’s revenues in the to-be-reported quarter.
Also, in October, HSIC launched Henry Schein Marketplace — a new online service that will offer more than 8,000 non-clinical products to dental customers looking for the additional convenience of purchasing supplies from a single source at competitive prices. The same month, Henry Schein One collaborated with Bridge, a patient engagement technology provider, to develop and launch axiUm Engage — a platform designed to streamline workflows for academic and dental care organizations. We expect these developments to have boosted the fourth-quarter top line.
However, lower sales of PPE products might have hurt Henry Schein’s internally generated local currency sales in the fourth quarter.
Per our model estimates, Henry Schein’s Technology and Value-Added Services segment’s revenues should be $242.2 million for the quarter, suggesting a 14.3% 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 not the case here.
Earnings ESP: Henry Schein has an Earnings ESP of +8.13%. 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 #4 (Sell).
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.
The company is expected to release fourth-quarter 2024 results shortly. The Zacks Consensus Estimate for EPS implies a surge of 196.4% from the year-ago quarter’s reported figure.
Natera (NTRA - Free Report) has an Earnings ESP of +61.91% and a Zacks Rank #2 at present. The company is expected to release fourth-quarter 2024 results on Feb. 25. NTRA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.37%.
Paragon 28 (FNA - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #3 at present. The company is expected to release fourth-quarter 2024 results shortly. FNA delivered an earnings surprise of 6.2% in the last reported quarter.
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HSIC Gears Up for Q4 Earnings: Here's What You Need to Know
Henry Schein, Inc. (HSIC - Free Report) is scheduled to release fourth-quarter 2024 results on Feb. 25, before the opening bell.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
In the last reported quarter, the company posted adjusted earnings per share (EPS) of $1.22, which beat the Zacks Consensus Estimate by 5.2%. In the trailing four quarters, Henry Schein’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average negative surprise of 2.85%.
HSIC’s Q4 Estimates
The Zacks Consensus Estimate for revenues is pegged at $3.26 billion, which suggests an increase of 8.0% from the year-ago reported figure.
The Zacks Consensus Estimate for EPS is pinned at $1.30, which indicates a year-over-year increase of 97%.
Estimate Revision Trend Ahead of HSIC’s Q4 Earnings
Estimates for Henry Schein’s third-quarter earnings have moved north 6.6% to $1.30 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
Health Care Distribution
The company is expected to have sustained the recovery momentum from last year’s cybersecurity incident, which might have mainly affected the dental and medical distribution businesses in North America and Europe.
The dental distribution businesses are expected to have witnessed continued stable patient traffic globally. During the third quarter, revenues increased internationally in the dental merchandise arena, reflecting solid growth in Germany, Austria, France, Brazil, Australia and New Zealand. We expect this trend to have continued in the to-be-reported quarter as well.
In North America, Dental equipment sales are likely to have been consistent with the prior year. Internationally, equipment sales are also expected to have increased due to growth in parts of Europe, Australia and New Zealand.
Within the dental specialties business, dental implant and biomaterial sales as well as endodontic sales might have improved in the fourth quarter, with continued above-market growth in the United States and Europe.
Also, in North America, we expect sales growth to have resumed, aided by a new product line — Tapered Pro Conical implant. In the third quarter, Henry Schein launched the SmartShape Healers abutment product line, which is expected to have further attracted new customers and driven implant sales in the fourth quarter.
Henry Schein, Inc. Price and EPS Surprise
Henry Schein, Inc. price-eps-surprise | Henry Schein, Inc. Quote
However, the company is in the process of restricting the orthodontic business, for which it might have experienced a decline in orthodontic sales.
Per our model estimates, Henry Schein’s Health Care Distribution segment’s revenues should be $3.11 billion for the quarter, suggesting a 10.7% improvement year over year.
Technology and Value-Added Services
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, which registered more than 20% year-over-year growth in the third quarter. Additionally, the practice management software and revenue cycle management products are likely to have put up a strong performance.
The company has also gained high synergies from its recently launched Reserve with Google, Eligibility, Essentials and Eligibility Pro. These solutions are expected to have contributed favorably to HSIC’s fourth-quarter revenues.
The Home Solutions business is also expected to have performed well. In line with this, during the fourth quarter, the company entered into an agreement to acquire 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 deal to have had a positive impact on the company’s revenues in the to-be-reported quarter.
Also, in October, HSIC launched Henry Schein Marketplace — a new online service that will offer more than 8,000 non-clinical products to dental customers looking for the additional convenience of purchasing supplies from a single source at competitive prices. The same month, Henry Schein One collaborated with Bridge, a patient engagement technology provider, to develop and launch axiUm Engage — a platform designed to streamline workflows for academic and dental care organizations. We expect these developments to have boosted the fourth-quarter top line.
However, lower sales of PPE products might have hurt Henry Schein’s internally generated local currency sales in the fourth quarter.
Per our model estimates, Henry Schein’s Technology and Value-Added Services segment’s revenues should be $242.2 million for the quarter, suggesting a 14.3% 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 not the case here.
Earnings ESP: Henry Schein has an Earnings ESP of +8.13%. 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 #4 (Sell).
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.
Argenx (ARGX - Free Report) has an Earnings ESP of +44.82% 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 fourth-quarter 2024 results shortly. The Zacks Consensus Estimate for EPS implies a surge of 196.4% from the year-ago quarter’s reported figure.
Natera (NTRA - Free Report) has an Earnings ESP of +61.91% and a Zacks Rank #2 at present. The company is expected to release fourth-quarter 2024 results on Feb. 25. NTRA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.37%.
Paragon 28 (FNA - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #3 at present. The company is expected to release fourth-quarter 2024 results shortly. FNA delivered an earnings surprise of 6.2% in the last reported quarter.