Henry Schein (HSIC) Stock Forecast & Price Target

Henry Schein Inc. has demonstrated robust revenue growth across its segments, with medical products revenue increasing by 4.7% and 6.3%, respectively, showcasing a strong performance in both reported and local internal metrics. The global technology segment also exhibited notable growth, generating $167 million in revenue with an increase of 7.4% reported and a substantial 9.7% growth in the subsequent quarter. Additionally, the company anticipates mid-single-digit growth in adjusted EBITDA for 2025, indicating a positive trajectory for financial performance and operational efficiency.

Henry Schein Inc. has reported weaker than expected profitability, with gross margins declining to 31.4%, falling short of the company's own estimates by 60 basis points, which indicates significant challenges in controlling costs amidst pricing pressures. The company has also experienced a decline in U.S. dental merchandise revenue, down 1.2% year-over-year, and while international merchandise revenue showed a nominal increase of 1.9%, it declined on a local internal basis by 0.4%, reflecting broader market difficulties. Furthermore, the projected adjusted EBITDA for FY/25 has been revised downward to $1.090 billion, indicating a cautious outlook on future profitability in light of these unfavorable trends.