Henry Schein (HSIC) Stock Forecast & Price Target

Henry Schein Inc. reported a robust growth in its dental business revenue, increasing by 6.2% as reported and 5.9% on a local internal basis, highlighting the company's solid position in the healthcare market. The adjusted EBITDA is projected to grow by a mid-single-digit percentage, indicating a positive trend in profitability, while the global technology segment contributed $160 million in revenue, with growth rates of 2.4% and 2.1% on a reported and local internal basis, respectively. Additionally, the company's guidance for FY/25 includes expectations for a non-GAAP EPS range of $4.80-4.94, reflecting an anticipated growth of 1-4% and reaffirming its projections for earnings acceleration toward historical norms beyond 2025.

Henry Schein Inc. reported disappointing fourth-quarter results, significantly missing expectations for total revenue, which amounted to $3.19 billion, contrasting with an anticipated $3.35 billion. The gross margin fell short of expectations at 31.1%, contributing to an overall earnings shortfall primarily driven by a weaker top-line performance. Additionally, management indicated that the transition to a SaaS model and external factors, such as the timing of the flu season and Christmas, are creating short-term headwinds that negatively impact revenue growth.