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