Henry Schein 2025 Q1 Earnings Misses Targets with Net Income Up 15.3%
Monday, May 5, 2025 11:25 pm ET
27min read HSIC Trend
Revenue
Henry Schein's revenue for 2025 Q1 saw a slight decline of 0.1% compared to the same quarter last year, totaling $3.17 billion. The Global Distribution and Value-Added Services segment contributed notably with $2.67 billion, while Global Specialty Products generated $334 million. Additionally, the Global Technology segment added $162 million to the overall sales figure.
Earnings/Net Income
Henry Schein's EPS increased by 23.6% to $0.89 in 2025 Q1 from $0.72 in 2024 Q1, showcasing robust earnings growth. Net income also improved, reaching $113 million, which is a 15.3% rise from $98 million in the previous year's corresponding quarter. The EPS growth indicates strong financial health.
Price Action
The stock price of Henry Schein edged up 2.32% during the latest trading day, increased by 1.54% over the most recent full trading week, and declined 3.86% month-to-date.
Post-Earnings Price Action Review
Henry Schein's stock tends to perform positively in the short term following earnings reports, shown by historical data. The stock has a 66.67% likelihood of rising within three days post-earnings, with returns averaging 0.51%. However, the 10-day win rate drops to 47.62%, indicating less probable price appreciation, while the 30-day win rate is almost evenly split at 42.86%. The average returns for both the 10-day and 30-day periods are 0.24% and 0.51%, respectively. Positive earnings-related metrics like revenue, net income, and EPS often contribute to this pattern, as investors react favorably to earnings beats or optimistic guidance. Despite the absence of specific metrics, it's inferred that earnings positivity tends to drive higher stock prices. Overall, Henry Schein's stock sees more favorable returns immediately after earnings, particularly within the initial three and thirty-day periods.
CEO Commentary
Stanley Bergman, Chairman and CEO of Henry Schein, expressed satisfaction with the company’s first-quarter financial results, noting momentum heading into the second quarter. He highlighted a good sales performance in February and March, despite a sluggish January due to weather. Bergman emphasized the impact of a strong US dollar and the deferral of sales from the prior year affecting year-over-year comparisons. He reaffirmed commitment to the refreshed BOLD+1 Strategic Plan, focusing on improving operational efficiency, enhancing customer experience, and expanding digital solutions. Bergman remains optimistic about achieving high single-digit to low double-digit earnings growth through successful execution of the strategy.
Guidance
Henry Schein maintains its 2025 financial guidance, expecting non-GAAP diluted EPS to range from $4.80 to $4.94, with stronger performance anticipated in the second half of the year. The company projects total sales growth of 2% to 4% over 2024 and adjusted EBITDA growth in the mid-single digits compared to 2024’s $1.1 billion. The guidance assumes a non-GAAP effective tax rate of 25% and stable foreign currency exchange rates.
Additional News
Recently, Henry Schein announced a major share repurchase program, buying back approximately 2.3 million shares of its common stock in Q1 2025, totaling $161 million. This move underscores the company’s commitment to returning value to shareholders and maintaining fiscal discipline. Additionally, the company is advancing its restructuring plan aimed at achieving annual run-rate savings between $75 million and $100 million by the end of 2025. These strategic initiatives reflect Henry Schein’s focus on optimizing its capital structure and enhancing long-term shareholder value.
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