Henry Schein Inc (HSIC) Q3 2024 Earnings Call Highlights: Navigating Market Shifts and ...

GuruFocus.com11-06

Global Sales: $3.2 billion, growth of 0.4% compared to Q3 2023. Operating Margin (GAAP): 4.94%, a decline of 140 basis points from the prior year. Operating Margin (Non-GAAP): 7.64%, a decline of 45 ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHenry Schein Inc (HSIC) Q3 2024 Earnings Call Highlights: Navigating Market Shifts and ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-06 15:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/henry-schein-inc-hsic-q3-071531430.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Global Sales: $3.2 billion, growth of 0.4% compared to Q3 2023.\nOperating Margin (GAAP): 4.94%, a decline of 140 basis points from the prior year.\nOperating Margin (Non-GAAP): 7.64%, a decline of 45 ...</p>\n\n<a href=\"https://finance.yahoo.com/news/henry-schein-inc-hsic-q3-071531430.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"HSIC","symbol_name":"汉瑞祥","start_time":0,"source_url":"https://finance.yahoo.com/news/henry-schein-inc-hsic-q3-071531430.html","article_id":"2481424516","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/erjGVcbTqnu6LuHXHaZZzg--~B/aD01MDA7dz01MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/57071ca137501d4eabb541c824929132"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481424516","pubTimestamp":1730877331,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Global Sales: $3.2 billion, growth of 0.4% compared to Q3 2023.Operating Margin : 4.94%, a decline of 140 basis points from the prior year.Operating Margin : 7.64%, a decline of 45 basis points from the prior year.Net Income : $99 million or $0.78 per diluted share.Adjusted EBITDA: $268 million, compared to $278 million in Q3 2023.Dental Sales: $1.9 billion, a decrease of 1.6%.Technology and Value-Added Services Sales: $221 million, growth of 5.1%.Share Repurchases: Approximately 2 million shares at an average price of $69.09 per share, totaling $135 million.Operating Cash Flow: $151 million for the third quarter.2024 Non-GAAP EPS Guidance: Increased to $4.74 to $4.82.GuruFocus has detected 6 Warning Sign with HSIC.Henry Schein Inc  exceeded its financial expectations for the third quarter and increased its non-GAAP EPS guidance range to $4.74 to $4.82.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"HSIC":"汉瑞祥"},"translate_title":"Henry Schein Inc(HSIC)2024年第三季度收益看涨期权亮点：驾驭市场变化和……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HSIC":1},"content_text":"Global Sales: $3.2 billion, growth of 0.4% compared to Q3 2023.\nOperating Margin (GAAP): 4.94%, a decline of 140 basis points from the prior year.\nOperating Margin (Non-GAAP): 7.64%, a decline of 45 basis points from the prior year.\nNet Income (GAAP): $99 million or $0.78 per diluted share.\nNet Income (Non-GAAP): $155 million or $1.22 per diluted share.\nAdjusted EBITDA: $268 million, compared to $278 million in Q3 2023.\nDental Sales: $1.9 billion, a decrease of 1.6%.\nMedical Sales: $1.1 billion, growth of 2.9%.\nTechnology and Value-Added Services Sales: $221 million, growth of 5.1%.\nShare Repurchases: Approximately 2 million shares at an average price of $69.09 per share, totaling $135 million.\nOperating Cash Flow: $151 million for the third quarter.\n2024 Non-GAAP EPS Guidance: Increased to $4.74 to $4.82.\n2024 Total Sales Growth Guidance: Expected to be 4% to 5% over 2023.\n\n\nWarning! GuruFocus has detected 6 Warning Sign with HSIC.\n\nRelease Date: November 05, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nHenry Schein Inc (NASDAQ:HSIC) exceeded its financial expectations for the third quarter and increased its non-GAAP EPS guidance range to $4.74 to $4.82.\nThe company reported strong growth in high-growth, high-margin products and services, contributing over 40% of total non-GAAP operating income.\nHenry Schein Inc (NASDAQ:HSIC) successfully launched its global e-commerce platform in the UK and Ireland, with plans to expand to the United States next year.\nThe dental equipment business showed stability in North America and increased investment in Europe, Australia, and New Zealand.\nThe company continues to return capital to shareholders through its share repurchase program, repurchasing approximately 2 million shares in the third quarter.\n\n Negative Points \n\nGlobal sales growth was only 0.4% compared to the third quarter of 2023, with a decrease in LCI sales of 2.6%.\nThe GAAP operating margin for the third quarter declined by 140 basis points compared to the prior year.\nThere was a decrease in distribution business sales due to lower sales following last year's cyber incident.\nThe orthodontic business experienced lower sales due to restructuring and transitioning to the Smilers brand clear aligner.\nThe medical sales were impacted by less demand for respiratory diagnostic products and flu and COVID vaccines, along with a shift to generic alternatives for certain branded pharmaceuticals.\n\n Q & A Highlights \nQ: Can you comment on the overall health of the dental and medical trends as we move through October and into November, and how should we think about the third-quarter results versus the guidance? A: The market is stable, with a shift towards lower-priced alternative brands in the U.S., impacting sales but not profitability. October merchandise sales trends were consistent with September. Implants and biomaterials showed strong growth, driven by specific products. Guidance reflects these trends, with expectations of stable market conditions and ongoing market share recovery post-cyber incident.\nQ: Regarding 2025, the street expects over 4% revenue growth and nearly 11% EPS growth. Are these expectations aligned with your outlook? A: We haven't provided 2025 guidance yet, but we're considering market trends and our market share recovery. The momentum from Q3 into Q4 and into 2025 will be key. We'll provide detailed guidance in February, considering these factors.\nQ: How do restructuring savings compare to higher depreciation costs, and should margins improve next year? A: We expect margins to improve as restructuring savings should more than offset increased depreciation expenses. Growth in revenues, especially in distribution, will be crucial for operating margin expansion in 2025.\nQ: Can you elaborate on the dental manufacturers wanting to compete more and the restructuring in the clear aligner business? A: Consumers are seeking value, leading to a shift towards lower-priced brands. This trend has been ongoing and is magnified recently. In the clear aligner business, we're transitioning from Reveal to Smilers, leveraging existing infrastructure to reduce costs and improve product offerings.\nQ: How do you see capital allocation in 2025 compared to previous years? A: We expect capital allocation in 2025 to align with historical trends, focusing on share repurchases and M&A in the $300 million to $400 million range. We're open to opportunistic M&A if it aligns with our strategic goals.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481424516"}