Henry Schein (HSIC) Stock Forecast & Price Target

Henry Schein Inc. demonstrated strong financial performance, with medical products revenue increasing by 6.3% as reported and 4.6% on a local internal basis, highlighting the robustness of its Global Distribution and Value-Added Services segment. Additionally, the Global Technology segment achieved revenue of $167 million, reflecting a growth of 7.4% as reported and 6.6% on a local internal basis, underscoring the company’s effective integration of technology into its service offerings. Furthermore, the expectation of mid-single-digit percentage growth in adjusted EBITDA signals a positive outlook for the company's profitability and operational efficiency moving forward.

Henry Schein Inc.’s recent financial performance has shown a significant decline, with a gross margin of 31.4%, which is down 110 basis points compared to the same period last year and has missed internal estimates by 60 basis points. This underperformance is attributed to lower glove pricing and temporary sales initiatives, suggesting challenges in pricing power and sales effectiveness. Consequently, these factors raise concerns regarding the company’s profitability and overall financial stability moving forward.