(Reuters) -Medical supplies distributor Henry Schein Inc 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
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shreya Biswas)
Comments