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Henry Schein misses quarterly revenue estimates on weak demand for dental products
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Henry Schein misses quarterly revenue estimates on weak demand for dental products
May 26, 2025 1:06 AM

May 5 (Reuters) - Medical supplies distributor Henry

Schein Inc ( HSIC ) on Monday missed first-quarter revenue

estimates, hurt by muted demand for its dental products amid

rising inflation.

Reduced customer budgets for non-essential dental procedures

and loss of exclusivity for its treatments dented the company's

sales, particularly at its dental segment - a key driver of its

revenue.

"The quarterly performance and reiterated 2025 guidance

underscore that global dental markets remain broadly

challenged," Leerink Partners analyst Michael Cherny said.

Henry Schein reaffirmed its adjusted annual profit forecast

of $4.80 to $4.94 per share, compared with analysts' average

estimate of $4.86 per share, according to data compiled by LSEG.

It expects 2025 total sales growth of 2% to 4%.

First-quarter dental equipment sales fell 2.4% from a year

ago, hurt by the deferred sales from the fourth quarter of 2023

to the first quarter of 2024.

However, Henry Schein's adjusted quarterly profit of $1.15

per share beating expectations of $1.11.

"Not a strong quarter, but enough to keep us positive ahead

of potential KKR-influenced changes", Baird analyst Jeff Johnson

said.

Henry Schein's investors have been urging the company to

diversify its operations and 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.

The company incurred restructuring costs of $25 million and

expects savings at the high end of its goal of $75 million to

$100 million by the end of 2025.

Its total revenue came in at $3.17 billion during the first

quarter, missing estimates of $3.23 billion

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