Henry Schein’s first quarter results saw sales remain flat year over year, falling short of market revenue expectations. Management attributed the muted top-line to a slow January caused by weather-related events, as well as continued foreign currency headwinds and challenging equipment comparisons. CEO Stanley Bergman explained, “Sales growth accelerated throughout the quarter after a slow start, and we saw particular strength in specialty products and home solutions.” Adjusted profit exceeded expectations, supported by cost reductions from ongoing restructuring initiatives.
Is now the time to buy HSIC? Find out in our full research report (it’s free).
Henry Schein (HSIC) Q1 CY2025 Highlights:
- Revenue: $3.17 billion vs analyst estimates of $3.23 billion (flat year on year, 2% miss)
- Adjusted EPS: $1.15 vs analyst estimates of $1.11 (3.6% beat)
- Adjusted EBITDA: $259 million vs analyst estimates of $260.8 million (8.2% margin, 0.7% miss)
- Management reiterated its full-year Adjusted EPS guidance of $4.87 at the midpoint
- Operating Margin: 5.5%, in line with the same quarter last year
- Organic Revenue was flat year on year (-1.8% in the same quarter last year)
- Market Capitalization: $8.86 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Henry Schein’s Q1 Earnings Call
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Jon Block (Stifel) asked about the effect of foreign exchange on guidance; CFO Ron South clarified that FX is expected to be neutral for the balance of the year, with earlier headwinds largely offsetting any later tailwinds.
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Jason Bednar (Piper Sandler) pressed on tariff impacts and mitigation; South explained mitigation involves adjusting sourcing, negotiating with suppliers, and using alternative products, aiming to limit the financial effect.
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Jeff Johnson (Baird) inquired about cost savings from restructuring; South detailed that the company is on track for $100 million in annualized run-rate savings, with about $60 million already achieved entering the year.
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Allen Lutz (Bank of America) requested insight into U.S. implant market softness; CEO Stanley Bergman attributed it to weaker demand for high-end procedures, while noting stable trends in lower-cost segments and market share gains.
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Elizabeth Anderson (Evercore ISI) asked about sourcing flexibility if tariffs persist; Bergman outlined ongoing shifts to non-China suppliers and highlighted that most specialty products are already locally manufactured, providing some insulation.
Catalysts in Upcoming Quarters
In the coming quarters, we will monitor (1) the pace of adoption for Henry Schein’s cloud-based dental technology platforms and the impact of new product launches, (2) evidence that tariff mitigation strategies are effectively protecting margins without sacrificing growth, and (3) continued expansion in high-growth areas such as specialty products and home healthcare. How management balances cost control with investment in innovation will also be a key focus.
Henry Schein currently trades at $73.15, up from $65.30 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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