Dental and medical products company Henry Schein (NASDAQ:HSIC) missed Wall Street’s revenue expectations in Q1 CY2025, with sales flat year on year at $3.17 billion. Its non-GAAP profit of $1.15 per share was 3.6% above analysts’ consensus estimates.
Is now the time to buy Henry Schein? Find out in our full research report.
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Revenue: $3.17 billion vs analyst estimates of $3.23 billion (flat year on year, 2% miss)
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Adjusted EPS: $1.15 vs analyst estimates of $1.11 (3.6% beat)
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Adjusted EBITDA: $259 million vs analyst estimates of $260.8 million (8.2% margin, 0.7% miss)
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Management reiterated its full-year Adjusted EPS guidance of $4.87 at the midpoint
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Operating Margin: 5.5%, in line with the same quarter last year
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Free Cash Flow Margin: 0.2%, down from 4.9% in the same quarter last year
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Market Capitalization: $8 billion
“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 Chief Executive Officer of Henry Schein.
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.
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Henry Schein’s 4.7% annualized revenue growth over the last five years was mediocre. This fell short of our benchmark for the healthcare sector and is a tough starting point for our analysis.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Henry Schein’s recent performance shows its demand has slowed as its revenue was flat over the last two years.
This quarter, Henry Schein missed Wall Street’s estimates and reported a rather uninspiring 0.1% year-on-year revenue decline, generating $3.17 billion of revenue.
Looking ahead, sell-side analysts expect revenue to grow 3.4% over the next 12 months. Although this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average.
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