Aug 5 (Reuters) - Henry Schein missed Wall
Street estimates for second-quarter profit and maintained its
annual forecast on Tuesday, due to softer demand for its dental
products in the United States.
Shares of the Melville, New York-based dental and medical
products distributor fell nearly 5% in premarket trading.
High interest rates and inflationary pressures have hurt
demand for non-urgent procedures such as orthodontic treatment
and higher-end restorative dental procedures.
The company said while its sales showed strong growth in
international markets, it recorded a slowdown in U.S. orders
beginning in May due to economic uncertainty from tariffs, but
sales returned to normal by the end of the quarter.
Henry Schein, which has seen declining revenue over the past
two years, has come under pressure from investors to diversify
its operations to better compete with larger distribution peers.
Private equity firm KKR in January took a 12% stake
in Henry Schein, becoming the largest non-index fund
shareholder, and reached a deal to add members to the company's
board.
Henry Schein reaffirmed its 2025 adjusted profit per share
forecast in the range of $4.80 and $4.94, and annual sales
growth of 2% to 4%.
"We expect 2025 to be the base year from which to grow and
achieve our previously provided long-term goal of high-single
digit to low-double digit earnings growth," CEO Stanley Bergman
said.
On an adjusted basis, the company earned profit per share of
$1.10 for the second quarter ended June 28, below analysts'
average estimate of $1.19, according to data compiled by LSEG.
Quarterly revenue came in at $3.24 billion, slightly above
estimates of $3.22 billion.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Shailesh
Kuber and Shinjini Ganguli)