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Henry Schein, Inc. HSIC is scheduled to release second-quarter 2025 results on Aug. 5, before the opening bell.
In the last reported quarter, the company posted adjusted earnings per share (EPS) of $1.15, which surpassed the Zacks Consensus Estimate by 3.6%. Henry Schein’s earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 2.4%.
The Zacks Consensus Estimate for revenues is pegged at $3.22 billion, which suggests an increase of 2.7% from the year-ago reported figure.
The Zacks Consensus Estimate for EPS is pinned at $1.18, which indicates a year-over-year decrease of 4.1%.
Estimates for second-quarter earnings have dropped 1 cent to $1.18 in the past 30 days.
Here’s how the healthcare product and service distributor has been performing leading up to this announcement.
Similar to the last quarter, the segment is likely to have experienced stable conditions across U.S. and international dental merchandise and equipment markets, as well as in the U.S. medical market. Henry Schein may have also gained market share. Additionally, sales in the core dental and medical distribution businesses are likely to have continued to pick up after a slow start to the year.
In the second quarter, U.S. dental merchandise sales are likely to have been driven by volume growth, with consistent year-over-year pricing. U.S. dental equipment sales in the first quarter faced a challenging year-over-year comparison, impacted by a sales deferral from the fourth quarter of 2023. Despite this, Henry Schein witnessed steady demand for both traditional and digital equipment, as well as an increasing number of new practice build-outs. We expect this positive trend to have remained in the second quarter.
Meanwhile, the U.S. medical business is likely to have gained from a strong performance in the Home Solutions business as well as growth from acquisitions.
Henry Schein, Inc. price-eps-surprise | Henry Schein, Inc. Quote
International dental merchandise sales are expected to have remained strong in Canada, Central Europe and Brazil. Still, softness in France may have offset some of that growth. Dental equipment sales are likely to have risen in Canada and across most of Europe. New products introduced at the 2025 International Dental Show in Cologne — such as 3D printers and intraoral scanners — may have contributed to a stronger top-line performance. However, the fluctuating nature of the practice transitions business is likely to have weighed upon Value-Added Services sales in the second quarter.
Our model projects Henry Schein’s global Distribution and Value-Added Services segment’s revenues to edge up 0.3% in the second quarter, reaching $2.67 billion.
The segment is likely to have benefited from solid internal sales, led by TriMed — the orthopedic products business Henry Schein acquired in April 2024. Robust implant and biomaterial sales, particularly in the DACH region of Europe, may have aided the overall division's growth. Further, with the supply-chain issue with the EdgePRO laser product resolved last quarter, the endodontic business is expected to have witnessed positive growth. Meanwhile, the orthodontic business is likely to have seen lower sales growth in the second quarter, as Henry Schein is currently reorganizing the business to support future profitable growth.
Per our model estimates, Henry Schein’s global Specialty Products segment’s revenues are expected to increase 2% year over year.
In the second quarter, the segment likely witnessed lower revenues from certain legacy products. However, this is expected to have been offset by steady growth in cloud-based users of its practice management software and an increased adoption of its revenue cycle management solutions.
Our model estimates indicate a 2.4% year-over-year improvement in Global Technology revenues in the to-be-reported quarter.
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 estimates. This is exactly the case here, as you can see below:
Earnings ESP: Henry Schein has an Earnings ESP of +2.37%. 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. You can see the complete list of today’s Zacks Rank #1 stocks here.
Here are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:
Exact Sciences EXAS has an Earnings ESP of +475.00% and a Zacks Rank #2. The company is slated to release second-quarter 2025 results on Aug. 6.
EXAS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 48.8%. As per the Zacks Consensus Estimate, the company’s second-quarter EPS is expected to increase 77.8% from the year-ago quarter figure.
Cencora COR has an Earnings ESP of +1.49% and a Zacks Rank #2. The company is set to release third-quarter fiscal 2025 results on Aug. 6.
COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%. Going by estimates, COR’s fiscal third-quarter EPS is expected to surge 13.2% from the year-ago reported figure.
Cardinal Health CAH has an Earnings ESP of +0.72% and a Zacks Rank #2. The company is slated to release fourth-quarter fiscal 2025 results on Aug. 12.
CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%. The consensus estimate indicates that the company’s fiscal fourth-quarter EPS will increase 10.3% from the year-ago quarter’s figure.
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This article originally published on Zacks Investment Research (zacks.com).
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