Henry Schein's Reports Mixed Bag Q1 Earnings, CEO Confident In Business Fundamentals

Henry Schein Inc. HSIC reported on Monday that its first-quarter adjusted EPS of $1.15, up 4.5% year over year, beat the consensus of $1.11.

Sales were $3.17 billion, missing the consensus of $3.23 billion.

• Constant currency total net sales increased 1.4% compared with the first quarter of 2024. Excluding the impact of personal protective equipment (PPE) and COVID test kits, constant currency sales growth was 2.0%.
• As reported, total net sales decreased 0.1% due to a stronger U.S. dollar than last year’s first quarter.

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“We are pleased with our first quarter financial results as well as the momentum we are seeing heading into the second quarter and remain confident in the fundamentals of our business,” said Stanley M. Bergman, chairman of the board and CEO of Henry Schein.

“We are advancing our BOLD+1 Strategic Plan, which has been refreshed for 2025 to 2027, with our team focused on growing the distribution business through increasing operational efficiency and enhancing customer experience, growing our dental and medical specialty businesses and corporate brand products, and further developing our digital footprint and digital solutions,” Bergman added.

• Global Distribution and Value-Added Services sales reached $2.68 billion, up 0.8% in constant currencies compared with the first quarter of 2024, and increased 1.5%, excluding the impact of PPE and COVID test kits. As-reported sales decreased 0.7%.
• Global Specialty Products sales were $367 million, 4.3% in constant currencies compared with the first quarter of 2024, reflecting continued growth in implant and biomaterial sales and acquisition growth. As-reported sales increased 2.0%.
• Global Technology sales were $162 million, up 3.4% in constant currencies compared with the first quarter of 2024. Strong sales growth in practice management systems, including Dentrix Ascend and Dentally cloud-based solutions, as well as in revenue cycle management products, was partially offset by lower sales of certain legacy products. As-reported sales increased 2.9%.

Restructuring Plan: During the first quarter of 2025, 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.

Guidance: Henry Schein affirms 2025 adjusted EPS of $4.80-$4.94 versus a consensus of $4.86. The company also expects sales growth of approximately 2%—4% over 2024, of $12.43 billion—$13.18 billion versus a consensus of $13 billion.

The company’s 2025 adjusted EBITDA growth is unchanged and is expected to increase by mid-single digits compared with 2024.

The company says the guidance also assumes that foreign currency exchange rates remain generally consistent with current levels and that additional tariffs will not be introduced.

Price Action: HSIC stock is trading 1.30% lower at $64.46 during the premarket session at the last check on Monday.

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