Henry Schein, Inc. HSIC registered adjusted earnings per share (EPS) of $1.15 in the first quarter of 2025, up 4.5% from the year-ago period’s figure. The figure topped the Zacks Consensus Estimate by 3.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).

Excluding adjustments such as restructuring costs, acquisition intangible amortization, cyber incident-insurance proceeds and others, the company reported a GAAP EPS of 88 cents. This compares to the year-ago quarter’s earnings of 72 cents.

HSIC’s Q1 Revenues in Detail

Henry Schein reported net sales of $3.17 billion, down 0.1% year over year. The metric also lagged the Zacks Consensus Estimate by 1.8%.

Meanwhile, constant currency total net sales increased 1.4%. Excluding the impact of personal protective equipment (PPE) and COVID-19 test kits, constant currency sales growth was 2% year over year.

Following the earnings announcement, HSIC stock declined 1.4% in pre-market trading today.

HSIC’s Q1 Segmental Analysis

Global Distribution and Value-Added Services

Sales in the segment fell 0.7% on a reported basis (up 0.8% in constant currencies) year over year, to $2.68 billion. This was almost in line with our model’s projection.

Within this, Global Dental Distribution merchandise sales for the quarter rose 0.4% in constant currencies. Monthly sales growth accelerated throughout the quarter after a slow start in January, primarily due to weather-related events in the United States.

Henry Schein, Inc. Price, Consensus and EPS SurpriseHenry Schein, Inc. Price, Consensus and EPS Surprise

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

Global Dental Distribution equipment sales decreased 2.4% in constant currencies, impacted by a deferral of sales from the fourth quarter of 2023 to the first quarter of 2024, resulting in a more difficult year-over-year comparison.

Global Medical Distribution sales for the quarter jumped 3% in constant currencies, reflecting increased patient traffic to physician offices, strong growth in the home solutions business and growth from acquisitions.

Global Specialty Products

In the first quarter, the segment’s sales totaled $367 million, up 2% on a reported basis (4.3% in constant currencies). This reflectedcontinued growth in implant and biomaterial sales and acquisition growth. Our model forecast was $385 million.

Global Technology

The segment’s sales were $162 million, up 2.9% on a reported basis and advanced 3.4% in constant currencies,led by strong sales growth in practice management systems, including Dentrix Ascend and Dentally cloud-based solutions, as well as in revenue cycle management products. Our model projected $160.8 million for this segment.

Story Continues

HSIC’s Margin Performance

In the reported quarter, the gross profit totaled $1.00 billion, representing a 1.2% decrease year over year. The gross margin contracted 34 basis points (bps) to 31.6% due to a 0.4% rise in the cost of sales.

SG&A expenses declined 6.7% to $738 million in the quarter under review. The adjusted operating profit was $262 million, up 18.6% year over year. The adjusted operating margin expanded 130 bps year over year to 8.3%.

Liquidity Position of HSIC

Henry Schein exited the first quarter of 2025 with cash and cash equivalents of $127 million compared with $122 million at the end of the fourth quarter of 2024.

Cumulative net cash provided by operating activities at the end of the first quarter was $37 million, down from the year-ago figure of $197 million.

During the reported quarter, HSIC repurchased nearly 2.3 million shares of its common stock at an average price of $71.58 per share for a total of approximately $161 million. The company had approximately $718 million authorized and available for future stock repurchases as of the end of the first quarter.

HSIC’s 2025 Guidance

The company restated its adjusted EPS forecast for the year, expected in the range of $4.80-$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 $4.82 per share.

Projected revenue growth for 2025 also remains unchanged at nearly 2-4% compared with the year-ago figure. The Zacks Consensus Estimate for revenues is currently pegged at $12.99 billion.

Our Take on HSIC

Henry Schein delivered an earnings beat and revenue miss in the first quarter of 2025. The top line was also down slightly on a year-over-year basis. The contraction of the gross margin is discouraging.

On a promising note, the company has entered the second quarter with solid momentum, reflecting confidence in its core business fundamentals. Henry Schein is advancing its BOLD+1 Strategic Plan, which has been refreshed for 2025 to 2027, focused on growing the distribution business through increasing operational efficiency and enhancing customer experience, growing the dental and medical specialty businesses and corporate brand products, and further developing its digital footprint and digital solutions.

HSIC’s Zacks Rank & Key Picks

HSIC currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Integer Holdings Corporation ITGR and Boston Scientific BSX.

AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.

Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, exceeding the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.

ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 2.8%.

Boston Scientific, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 2.3%.

BSX has an estimated 2025 earnings growth rate of 15.9% compared with the S&P 500 composite’s 11.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.8%.

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