Henry Schein (HSIC) Stock Forecast & Price Target

Henry Schein Inc demonstrated solid revenue growth in several key segments, with medical products revenue increasing by 4.7% as reported and 3.0% on a local internal basis, along with dental business revenue rising by 2.7% as reported and 2.6% on a local internal basis. Furthermore, the global technology segment showed robust performance with revenues of $167 million, reflecting a growth of 7.4% as reported and 6.6% on a local internal basis, followed by an impressive 9.7% growth for the subsequent reporting period. Additionally, adjusted EBITDA is anticipated to grow in the mid-single digits for FY/25, indicating a positive financial trajectory for the company moving forward.

Henry Schein Inc reported a significant downturn in profitability, with gross margins falling to 31.4%, which was 110 basis points lower than the previous year and 60 basis points below expectations, indicating substantial pricing pressures particularly in the dental merchandise segment. Despite a slight increase in international merchandise revenue, domestic sales experienced a decline of 1.2%, further exacerbating concerns about the company's market position. Additionally, the adjusted EBITDA forecast for FY/25 has been revised downward to $1.090 billion, reflecting a cautious outlook influenced by disappointing operational performance and profitability misses in both non-GAAP EPS and adjusted EBITDA metrics.