Dental Equipment & Technology Stocks Q2 Recap: Benchmarking Henry Schein (NASDAQ:HSIC)

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at dental equipment & technology stocks, starting with Henry Schein (NASDAQ:HSIC).

The dental equipment and technology industry encompasses companies that manufacture orthodontic products, dental implants, imaging systems, and digital tools for dental professionals. These companies benefit from recurring revenue streams tied to consumables, ongoing maintenance, and growing demand for aesthetic and restorative dentistry. However, high R&D costs, significant capital investment requirements, and reliance on discretionary spending make them vulnerable to economic cycles. Over the next few years, tailwinds for the sector include innovation in digital workflows, such as 3D printing and AI-driven diagnostics, which enhance the efficiency and precision of dental care. However, headwinds include economic uncertainty, which could reduce patient spending on elective procedures, regulatory challenges, and potential pricing pressures from consolidated dental service organizations (DSOs).

The 4 dental equipment & technology stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.

While some dental equipment & technology stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.

Henry Schein (NASDAQ:HSIC)

With a vast inventory of over 300,000 products stocked in distribution centers spanning more than 5.3 million square feet worldwide, Henry Schein (NASDAQ:HSIC) is a global distributor of healthcare products and services primarily to dental practices, medical offices, and other healthcare facilities.

Henry Schein reported revenues of $3.24 billion, up 3.3% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates.

“We had good sales growth in our Global Distribution Group this quarter while experiencing lower margins in the U.S. versus the prior year primarily resulting from lower glove pricing as well as time-limited targeted sales initiatives. We are pleased with the results from these initiatives and have returned to normal levels of promotional activity. Our Specialty Products and Technology Groups continued to deliver strong results, driven primarily by sales from innovative products and solutions, and cost efficiencies,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein.

Unsurprisingly, the stock is down 1.6% since reporting and currently trades at $69.03.

Read our full report on Henry Schein here, it’s free.

Best Q2: Envista (NYSE:NVST)

Uniting more than 30 trusted brands including Nobel Biocare, Ormco, and DEXIS under one corporate umbrella, Envista Holdings (NYSE:NVST) is a global dental products company that provides equipment, consumables, and specialized technologies for dental professionals.

Envista reported revenues of $682.1 million, up 7.7% year on year, outperforming analysts’ expectations by 7%. The business had a stunning quarter with an impressive beat of analysts’ constant currency revenue estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

Envista pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 12.3% since reporting. It currently trades at $21.25.

Is now the time to buy Envista? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Align Technology (NASDAQ:ALGN)

Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ:ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.

Align Technology reported revenues of $1.01 billion, down 1.6% year on year, falling short of analysts’ expectations by 4.8%. It was a disappointing quarter as it posted a miss of analysts’ sales volume estimates and a significant miss of analysts’ EPS estimates.

Align Technology delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 31.1% since the results and currently trades at $140.82.

Read our full analysis of Align Technology’s results here.

Dentsply Sirona (NASDAQ:XRAY)

With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ:XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide.

Dentsply Sirona reported revenues of $936 million, down 4.9% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded a narrow beat of analysts’ full-year EPS guidance estimates but a miss of analysts’ constant currency revenue estimates.

Dentsply Sirona had the slowest revenue growth among its peers. The stock is up 6% since reporting and currently trades at $14.48.

Read our full, actionable report on Dentsply Sirona here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.