Henry Schein, Inc. HSIC registered adjusted earnings per share (EPS) of $1.19 in the fourth quarter of 2024, up 80.3% from the year-ago period’s EPS of 66 cents. The figure was in line with the Zacks Consensus Estimate. 

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The company reported GAAP EPS of 74 cents compared with the year-ago quarter’s 13 cents. 

Full-year 2024 EPS of $4.74 increased 5.3% from the prior-year level. The figure missed the Zacks Consensus Estimate by 0.2%.

Following the earnings announcement, HSIC stock lost 1.4% at pre-market trading today.

HSIC’s Revenues in Detail

Henry Schein reported net sales of $3.19 billion, up 5.6% year over year. The metric lagged the Zacks Consensus Estimate by 2.4%. 

This indicated a 0.7% sales growth from acquisitions and a 0.4% sales decrease from unfavorable currency exchange. 

On a geographic basis, the company recorded sales of $1.86 billion in the United States, up 5.3% year over year. 

Sales totaled $845 million in the International market, up 7.4% year over year. 

The company reported full-year 2024 net sales of $12.67 billion, which increased 2.7% from the prior-year level. However, the figure missed the Zacks Consensus Estimate by 0.8%. 

HSIC’s Q4 Segmental Analysis

The company announced a change to its reportable segments to align with management reporting and provide more meaningful information for investors on the business. The three reportable segments are Distribution and Value-Added Services (includes global Dental, Medical and Value-Added Services businesses), Specialty Products and Technology. 

In the fourth quarter, the company recorded $2.70 billion in Global Distribution and Value-Added Services sales, up 5.9% year over year. 

Global Specialty Products revenues improved 7.2% year over year to $368 million. 

Revenues from Global Technology rose 2.4% to $160 million. 

Margin Trend of HSIC

In the reported quarter, the gross profit totaled $993 million, representing a 7.5% increase year over year. The gross margin expanded 49 basis points (bps) to 31.1% despite a 5% rise in the cost of sales.

SG&A expenses declined 8.6% to $738 million in the quarter under review. The adjusted operating profit was $255 million compared with $117 million in the year-ago period. The adjusted operating margin expanded 411 bps year over year to 8%.

Liquidity Position of HSIC

Henry Schein exited 2024 with cash and cash equivalents of $122 million compared with $171 million at the end of 2023.  

Cumulative net cash provided by operating activities at the end of the fourth quarter was $848 million compared with the year-ago figure of $500 million.

During the reported quarter, HSIC repurchased nearly 1.1 million shares of its common stock at an average price of $71.35 per share for a total of approximately $75 million. The company had approximately $380 million authorized and available for future stock repurchases, with a further $500 million authorized by its board of directors on Jan. 27, 2025. 

HSIC’s 2025 Guidance

Henry Schein provided its financial outlook for 2025. 

The company expects adjusted EPS to be in the range of $ 4.80 to $4.94. The figure indicates 1-4% growth from the reported figure of 2024. The Zacks Consensus Estimate for the metric is currently pegged at $5.00 per share.

Henry Schein, Inc. Price, Consensus and EPS Surprise

Henry Schein, Inc. price-consensus-eps-surprise-chart | Henry Schein, Inc. Quote

Henry Schein expects 2025 sales growth of nearly 2-4% compared with the year-ago figure. The Zacks Consensus Estimate for revenues is currently pegged at $13.19 billion.

Our Take on HSIC

Henry Schein exited the fourth quarter of 2024 on a mixed note, with earnings meeting estimates and revenue lagging the same. However, both metrics increased on a year-over-year basis. The expansion bodes well for investors. 

Henry Schein experienced continued successful implementation of the BOLD+1 Strategic Plan, resulting in growth and efficiency throughout the business. The company’s fourth-quarter results indicated relatively stable dental and medical end-markets.

Under Henry Schein’s new restructuring plan, actions approved in both third and fourth quarters were estimated to provide more than $80 million in annual run-rate savings, indicating strong progress toward its goal of achieving $75-$100 million in annual run-rate savings by the end of 2025.

HSIC’s Zacks Rank & Key Picks

HSIC currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space are Bio-Rad Laboratories BIO, ResMed RMD and Cardinal Health CAH. 

Bio-Rad posted a third-quarter 2024 adjusted EPS of $2.01, topping the Zacks Consensus Estimate by 57%. Revenues of $649.7 million exceeded the Zacks Consensus Estimate by 2%.

BIO carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BIO has an earnings yield of 3.3% compared with the industry’s 0.6% yield. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.5%

ResMed, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $2.43, which beat the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion beat the Zacks Consensus Estimate by 1.6%.

RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Cardinal Health, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $1.93, which topped the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion outpaced the Zacks Consensus Estimate by 0.7%.

CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

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