Henry Schein (HSIC) Down 9.4% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Henry Schein (HSIC). Shares have lost about 9.4% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Henry Schein due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Henry Schein, Inc. before we dive into how investors and analysts have reacted as of late.HSIC Q4 Earnings & Revenues Beat Estimates, Margins DownHenry Schein, Inc. (HSIC) registered fourth-quarter 2025 adjusted earnings per share (EPS) of $1.34, up 12.6% from the year-ago period’s figure. The bottom line also surpassed the Zacks Consensus Estimate by 3.1%.Excluding adjustments, such as restructuring costs, acquisition intangible amortization and others, the company reported a GAAP EPS of 85 cents compared with the year-ago quarter’s 74 cents.Full-year 2025 adjusted EPS of $4.97 was up 4.8% from the year-ago period’s figure. The bottom line surpassed the Zacks Consensus Estimate by 1.2%.HSIC’s Revenues in DetailHenry Schein reported fourth-quarter net sales of $3.44 billion, up 7.8% year over year. The metric also beat the Zacks Consensus Estimate by 3.1%. This reflects 4.9% internal sales growth, 0.9% sales growth from acquisitions and a 1.9% increase resulting from foreign currency exchange. Full-year 2025 net sales of $13.18 billion were up 4% year over year. The metric beat the Zacks Consensus Estimate by 0.8%. HSIC’s Q4 Segmental AnalysisGlobal Distribution and Value-Added ServicesSales in the segment rose 7% year over year on a reported basis (up 5.2% in constant currencies) to $2.89 billion. Our model forecast was $2.81 billion.Global Dental Distribution merchandise sales for the quarter rose 3.7% in constant currencies, reflecting continuing strong sales momentum from the prior quarter.Global Dental Distribution equipment sales increased 9.1% at cc. Sales improvement was driven by strong growth in the United States, Germany, Brazil, Canada and Australia.Global Medical Distribution sales for the quarter jumped 4.8% at cc, reflecting good underlying growth in medical products despite softness in the respiratory product category. Global Value-added Services sales for the quarter increased 8.5% at cc. Sales growth was driven by consulting services.Global Specialty ProductsSales totaled $422 million, up 14.6% on a reported basis (11.1% in constant currencies). This reflected strong overall dental implant and endodontics sales growth. Our model forecast was $389.7 million.Global TechnologyThe segment’s sales totaled $173 million, up 8.4% on a reported basis and up 7.6% at cc, led by accelerated adoption of cloud-based software and sales growth from recently launched revenue cycle management solutions. Our model projected $175.5 million for this segment.HSIC’s Margin PerformanceIn the reported quarter, the gross profit totaled $1.06 billion, representing 7% increase year over year. The gross margin contracted 19 basis points (bps) to 30.9% due to an 8% rise in the cost of sales.SG&A expenses increased 9.5% to $808 million in the quarter under review. The adjusted operating profit was $255 million, flat year over year. The adjusted operating margin contracted 57 bps year over year to 7.4%.Liquidity Position of HSICHenry Schein exited the fourth quarter of 2025 with cash and cash equivalents of $156 million compared with $122 million at the end of the fourth quarter of 2024.Cumulative net cash provided by operating activities at the end of the reported quarter was $712 million, down from the year-ago figure of $848 million.During the reported quarter, HSIC repurchased nearly 2.8 million shares of its common stock at an average price of $71.10 per share for a total of approximately $200 million. At the end of the reported quarter, Henry Schein had $780 million authorized and available for future stock repurchases.HSIC’s 2026 GuidanceThe company expects 2026 total sales growth to be between 3% and 5%. The Zacks Consensus Estimate for sales is currently pegged at $13.53 billion, indicating 3.5% year-over-year growth.Non-GAAP diluted EPS for 2026 is expected to be in the band of $5.23-$5.37. The Zacks Consensus Estimate for earnings is pegged at $5.27 per share. How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.VGM ScoresCurrently, Henry Schein has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Henry Schein has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Henry Schein, Inc. (HSIC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks