Henry Schein (HSIC) Announces First Quarter 2025 Financial Earnings Results

Henry Schein, Inc. (HSIC) today announced its financial results for the recent quarter. The company reported a quarterly revenue of $3.168 billion, which fell short of the estimated $3.227 billion, marking a miss in revenue expectations by approximately $59 million. However, the earnings per share (EPS) met expectations, aligning with the estimated EPS of $1.11.

Key Highlights:

• First-quarter 2025 GAAP diluted EPS increased by 22% to $0.88 compared to the first quarter of 2024.
• Non-GAAP diluted EPS for the first quarter of 2025 was $1.15, a growth of 4.5% compared to the first quarter of 2024.
• The company maintained its 2025 financial guidance, expecting non-GAAP diluted EPS of $4.80 to $4.94 and sales growth of 2% to 4%.
• Henry Schein repurchased $161 million of common stock, approximately 2.3 million shares, during the first quarter of 2025.
• Total net sales for the quarter were $3.2 billion, with constant currency sales growth of 1.4% compared to the first quarter of 2024.
• Global Medical Distribution sales increased by 3.0% in constant currencies, reflecting increased patient traffic and growth from acquisitions.
• The company recorded $25 million in restructuring costs and expects to achieve annual run-rate savings at the high end of its $75 million to $100 million goal by the end of 2025.
• Henry Schein received validation of its net-zero science-based targets by 2050 from the Science Based Targets initiative (SBTi).

Summary:

Henry Schein, Inc. reported robust financial results for the first quarter of 2025, with significant growth in both GAAP and non-GAAP diluted EPS. The company achieved a 22% increase in GAAP diluted EPS, reaching $0.88, and a 4.5% growth in non-GAAP diluted EPS, reaching $1.15. Total net sales for the quarter were $3.2 billion, with a constant currency sales growth of 1.4% compared to the first quarter of 2024. The Global Medical Distribution segment saw a 3.0% increase in constant currencies, driven by increased patient traffic and growth from acquisitions. The company also recorded $25 million in restructuring costs, aiming for annual run-rate savings of up to $100 million by the end of 2025. Henry Schein maintained its financial guidance for 2025, projecting non-GAAP diluted EPS between $4.80 and $4.94, and sales growth of 2% to 4%.

Stanley M. Bergman, Chairman and CEO of Henry Schein, expressed confidence in the company’s performance and strategic direction, highlighting the advancement of the BOLD+1 Strategic Plan. This plan focuses on growing the distribution business, enhancing customer experience, and developing digital solutions, with the aim of achieving high-single-digit to low-double-digit earnings growth. In addition to its financial performance, Henry Schein has made significant strides in its sustainability efforts, receiving validation from the Science Based Targets initiative (SBTi) for its net-zero science-based targets by 2050. This achievement underscores the company’s commitment to environmental responsibility and its role in addressing climate change.

Henry Schein, Inc. (HSIC) has experienced a turbulent period in terms of stock price performance, with a notable decline of 18.38% over the past three months and a 5.70% drop in the last month alone. Despite these setbacks, the company’s fundamentals paint a more nuanced picture. The price-to-earnings ratio stands at 21.77, suggesting that investors are still willing to pay a premium for the stock, possibly due to its potential for future growth. However, the earnings per share (EPS) two-year compound annual growth rate (CAGR) is negative at -21.03%, indicating challenges in profitability. On a brighter note, the revenue two-year CAGR is positive at 10.27%, and the free cash flow two-year CAGR is robust at 15.16%, reflecting strong cash generation capabilities. The return on invested capital is modest at 7.38%, and the net profit margin is relatively thin at 3.08%, which may raise concerns about operational efficiency. Overall, while the recent price trends are concerning, the company’s solid cash flow growth and revenue expansion offer a glimmer of hope for long-term investors.

Henry Schein, Inc. provides health care products and services to dental practitioners and laboratories, physician practices, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services. The Health Care Distribution segment offers dental products, including infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, personal protective equipment, and high-tech and digital restoration equipment, as well as equipment repair services. This segment also provides medical products comprising branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, and vitamins. The Technology and Value-Added Services segment offers software, technology, and other value-added services that include practice management software systems for dental and medical practitioners. This segment also provides value-added practice solutions, which comprise financial services on a non-recourse basis, e-services, practice technology, network, and hardware services, as well as continuing education services for practitioners, and consulting and other services. Henry Schein, Inc. was founded in 1932 and is headquartered in Melville, New York.