A month has gone by since the last earnings report for Henry Schein (HSIC). Shares have added about 1.2% in that time frame, outperforming 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? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Henry Schein, Inc. before we dive into how investors and analysts have reacted as of late.
HSIC Q3 Earnings and Revenues Beat, '25 Outlook Up
Henry Schein, Inc. (HSIC) registered third-quarter 2025 adjusted earnings per share (EPS) of $1.38, up 13.1% from the year-ago period’s figure. The bottom line also surpassed the Zacks Consensus Estimate by 8.7%.
Excluding adjustments, such as restructuring costs, acquisition intangible amortization, and others, the company reported a GAAP EPS of 84 cents compared with the year-ago quarter’s 78 cents.
HSIC’s Q3 Revenues in Detail
Henry Schein reported net sales of $3.34 billion, up 5.4% year over year. The metric also beat the Zacks Consensus Estimate by 2%.
Meanwhile, constant currency net sales increased 4% year over year.
HSIC’s Q3 Segmental Analysis
Global Distribution and Value-Added Services
Sales in the segment rose 4.8% year over year on a reported basis (up 3.7% in constant currencies) to $2.84 billion. Our model forecast was $2.77 billion.
Global Dental Distribution merchandise sales for the quarter rose 2.9% in constant currencies, reflecting relatively consistent sales growth in local currencies across U.S. and international businesses.
Global Dental Distribution equipment sales increased 3.4% at cc. Sales improvement was driven by strong growth in Germany, as well as growth in the United States.
Global Medical Distribution sales for the quarter jumped 4.6% at cc, reflecting good underlying growth in medical products, pharmaceuticals, and the Home Solutions business.
Global Value-added Services sales for the quarter increased 2.9% at cc. Sales growth was driven by consulting services.
Global Specialty Products
In the third quarter, the segment’s sales totaled $369 million, up 5.9% on a reported basis (3.9% in constant currencies). This reflected strong overall dental implant and endodontics sales growth. Our model forecast was $362.6 million.
Global Technology
The segment’s sales totaled $173 million, up 9.7% on a reported basis and up 9% at cc, led by accelerated adoption of cloud-based software and sales growth from recently launched revenue cycle management solutions. Our model projected $168.6 million for this segment.
HSIC’s Margin Performance
In the reported quarter, the gross profit totaled $1.03 billion, representing a 3.3% increase year over year. The gross margin contracted 56 basis points (bps) to 30.7% due to a 6% rise in the cost of sales.
SG&A expenses increased 5% to $760 million in the quarter under review. The adjusted operating profit was $266 million, down 1.1% year over year. The adjusted operating margin contracted 51 bps year over year to 8%.
Liquidity Position of HSIC
Henry Schein exited the third quarter of 2025 with cash and cash equivalents of $136 million compared with $145 million at the end of the second quarter.
Cumulative net cash provided by operating activities at the end of the third quarter was $331 million, down from the year-ago figure of $644 million.
During the reported quarter, HSIC repurchased nearly 3.3 million shares of its common stock at an average price of $68.62 per share for a total of approximately $229 million. At the end of the third quarter, Henry Schein had $980 million authorized and available for future stock repurchases.
HSIC’s Updated 2025 Guidance
The company raised its full-year 2025 adjusted EPS forecast to the range of $4.88 to $4.96 (earlier $4.80-$4.94). The Zacks Consensus Estimate for the metric is currently pegged at $4.82.
Projected revenue growth for 2025 also increased to 3-4% (earlier 2-4%). The Zacks Consensus Estimate for revenues is currently pegged at $12.98 billion, indicating 2.5% year-over-year growth.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Henry Schein has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. 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. Notably, Henry Schein has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Henry Schein is part of the Zacks Medical - Dental Supplies industry. Over the past month, West Pharmaceutical Services (WST), a stock from the same industry, has gained 0.3%. The company reported its results for the quarter ended September 2025 more than a month ago.
West Pharmaceutical reported revenues of $804.6 million in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $1.96 for the same period compares with $1.85 a year ago.
West Pharmaceutical is expected to post earnings of $1.83 per share for the current quarter, representing a year-over-year change of +0.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for West Pharmaceutical. Also, the stock has a VGM Score of C.
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Henry Schein, Inc. (HSIC): Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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