What Happened?
Shares of dental and medical products company Henry Schein (NASDAQ: HSIC) fell 9.7% in the afternoon session after the company reported second-quarter earnings that missed profit expectations and showed a year-over-year decline.
The healthcare products distributor posted an adjusted earnings per share of $1.10, which fell short of analyst forecasts and decreased 10.6% compared to the prior year. While revenues of $3.24 billion slightly beat estimates, investors appeared concerned with the company's shrinking profitability. The results stemmed from softer demand for its dental products in the United States. Furthermore, the company's net income dropped to $86 million from $104 million in the same period last year. Despite the weak quarterly performance, Henry Schein reaffirmed its full-year guidance for 2025.
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What Is The Market Telling Us
Henry Schein’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock gained 3.5% on the news that a new trade agreement between the United States and Japan spurred a broad market rally. The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual stocks.
Henry Schein is down 7.3% since the beginning of the year, and at $63.54 per share, it is trading 22.4% below its 52-week high of $81.91 from February 2025. Investors who bought $1,000 worth of Henry Schein’s shares 5 years ago would now be looking at an investment worth $946.52.
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