Henry Schein (HSIC) Stock Forecast & Price Target

Henry Schein Inc. demonstrated robust growth in its medical products revenue, which increased by 6.3% as reported and 4.6% on a local internal basis, showcasing resilience in its main revenue-generating segment. The global technology segment also contributed positively, generating $167 million in revenue with a growth rate of 7.4% as reported and 6.6% on a local internal basis. Additionally, the company anticipates a mid-single-digit percentage growth in adjusted EBITDA, reflecting confidence in its financial trajectory and operational efficiency.

Henry Schein Inc. experienced a significant decline in profitability with a gross margin of 31.4%, falling 110 basis points year-over-year and missing expectations by 60 basis points. This decline is attributed to pricing pressures in the U.S. dental market, leading to a reported revenue decrease of 1.2% for dental merchandise. Furthermore, while international merchandise revenue showed a nominal increase of 1.9%, it still faced a 0.4% decline on a local internal basis, indicating challenges across both domestic and international markets.