By SiddhiPrabhanjan Mahatole and Mariam Sunny (Reuters) -Henry Schein forecast annual profit below Wall Street estimates on Tuesday as the dental and medical products distributor faces tepid demand amid persistent inflation. Shares of the company fell nearly 5% to $73.96 in early trading. Higher prices have squeezed customer budgets, forcing them to cancel or postpone […]
Health
Henry Schein forecasts 2025 profit below estimates on weak demand for dental products
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By SiddhiPrabhanjan Mahatole and Mariam Sunny
(Reuters) -Henry Schein forecast annual profit below Wall Street estimates on Tuesday as the dental and medical products distributor faces tepid demand amid persistent inflation.
Shares of the company fell nearly 5% to $73.96 in early trading.
Higher prices have squeezed customer budgets, forcing them to cancel or postpone non-urgent procedures such as orthodontic treatments and higher-end restorative dental procedures.
In recent months, investors have pressured the company to compete better with larger distributors such as Cardinal Health.
In January, private equity firm KKR took a 12% stake in Henry Schein to become the company’s largest non-index fund shareholder and reached a deal to add members to its board.
The 2025 outlook “highlights what remains a tough end market as well as sets the stage for Henry Schein to execute on its operational improvements, supported by its recent addition of KKR as a sizable investor and new Board additions,” Leerink Partners analyst Michael Cherny said in a research note.
The company expects 2025 adjusted per-share profit in the range of $4.80 to $4.94, below analysts’ estimates of $4.99, according to data compiled by LSEG.
Henry Schein expects growth of zero to 2% in the core dental market, CFO Ronald South said on a call with analysts, adding that to grow 2% “could be challenging.”
The company said it has lost market exclusivity for one of its key orthodontic treatments, driving more customers to cheaper options.
The New York-based distributor expects annual sales growth of about 2% to 4% from $12.67 billion reported in 2024. Analysts estimated 2025 sales of $13.19 billion.
Total revenue for the quarter came in at $3.19 billion, below estimates of $3.29 billion.
The company said it recorded restructuring costs of about $37 million in the quarter ended December 28.
Henry Schein posted a quarterly adjusted profit of $1.19 per share, missing estimates of $1.21 per share.
(Reporting by Siddhi Mahatole and Mariam Sunny in Bengaluru; Editing by Sahal Muhammed)