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Henry Schein (HSIC) Gains From Strong Global Network Amid FX Woes
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Henry Schein (HSIC - Free Report) is well positioned to gain from its extensive global foothold and diverse channel mix. Yet, headwinds like unfavorable currency movement and global economic uncertainties continue to affect the company. The stock carries a Zacks Rank #3 (Hold) at present.
Henry Schein’s strategy to expand digital dentistry globally is encouraging. The company is busy promoting digital workflows for general dentistry as well as dental specialties. HSIC is currently focusing on offering a diversified portfolio and value-added services along with a favorable end market.
In addition, the company is witnessing growing demand for its implant systems and endodontic products as well as its integrated software and services solutions, which are generating strong growth by delivering greater efficiency and a better experience to its customers.
Within Henry Schein’s Global Dental Specialty business, implant sales growth continued to be driven by the premium Camlog product line in Germany, Austria and Switzerland. North America reported an increase in dental specialty practices being acquired by larger Dental Service Organizations.
HSIC seems to be upbeat about its dental technology joint venture Henry Schein One. The dental software business has been progressing well despite a challenging business environment.
Image Source: Zacks Investment Research
Global growth in Henry Schein One is driven by ongoing migration to its cloud-based practice management software solutions, Dentrix Ascend and Dentally and by revenue cycle management business growth resulting from increased patient traffic driving a higher volume of e-claims.
Recently, HSIC announced the full integration of artificial intelligence (AI) solutions into Dentrix Ascend — the company’s cloud-based practice management software. The solutions, Dentrix Ascend Detect AI and Dentrix Ascend Voice, offer powerful tools to help dental professionals improve case acceptance and elevate patient care through accurate diagnoses. During the second quarter of 2023 earnings call, Henry Schein noted that its customer base for Dentrix and Dentrix Ascend increased nearly 40% from the prior year.
On the flip side, the current macroeconomic environment across the globe is adversely affecting the company’s financial operations. Particularly, inflation and recession are adversely affecting HSIC’s results of operations. Accordingly, governments and insurance companies continue to look for ways to contain the rising cost of healthcare. With the sustained macroeconomic pressures, the company may struggle to keep in check its cost of revenue and operating expenses. During the second quarter, Henry Schein’s SG&A expenses rose 4% year over year.
Fluctuating currency rates also hamper the growth of a multinational like Henry Schein, given that it derives a substantial amount of its revenues from international markets. During the second quarter, HSIC’s total revenues were negatively impacted by 0.4% due to unfavorable foreign currency movements.
Over the past year, shares of Henry Schein rose 11.6% compared with a 22.6% surge of the industry.
Haemonetics stock has risen 27.3% in the past year. Earnings estimates for Haemonetics have remained constant at $3.82 for 2023 and $4.07 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have remained constant at 97 cents in the past 30 days. Shares of the company have surged 221.9% in the past year compared with the industry’s rise of 1.4%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for Intuitive Surgical’s 2023 earnings have remained constant at $5.57 per share in the past 30 days. Shares of the company have gained 57.3% in the past year compared with the industry’s growth of 3.8%.
ISRG’s earnings beat estimates in three of the trailing four quarters and missed in one, the average surprise being 4.19%. In the last reported quarter, Intuitive Surgical delivered an earnings surprise of 7.58%.
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Henry Schein (HSIC) Gains From Strong Global Network Amid FX Woes
Henry Schein (HSIC - Free Report) is well positioned to gain from its extensive global foothold and diverse channel mix. Yet, headwinds like unfavorable currency movement and global economic uncertainties continue to affect the company. The stock carries a Zacks Rank #3 (Hold) at present.
Henry Schein’s strategy to expand digital dentistry globally is encouraging. The company is busy promoting digital workflows for general dentistry as well as dental specialties. HSIC is currently focusing on offering a diversified portfolio and value-added services along with a favorable end market.
In addition, the company is witnessing growing demand for its implant systems and endodontic products as well as its integrated software and services solutions, which are generating strong growth by delivering greater efficiency and a better experience to its customers.
Within Henry Schein’s Global Dental Specialty business, implant sales growth continued to be driven by the premium Camlog product line in Germany, Austria and Switzerland. North America reported an increase in dental specialty practices being acquired by larger Dental Service Organizations.
HSIC seems to be upbeat about its dental technology joint venture Henry Schein One. The dental software business has been progressing well despite a challenging business environment.
Image Source: Zacks Investment Research
Global growth in Henry Schein One is driven by ongoing migration to its cloud-based practice management software solutions, Dentrix Ascend and Dentally and by revenue cycle management business growth resulting from increased patient traffic driving a higher volume of e-claims.
Recently, HSIC announced the full integration of artificial intelligence (AI) solutions into Dentrix Ascend — the company’s cloud-based practice management software. The solutions, Dentrix Ascend Detect AI and Dentrix Ascend Voice, offer powerful tools to help dental professionals improve case acceptance and elevate patient care through accurate diagnoses. During the second quarter of 2023 earnings call, Henry Schein noted that its customer base for Dentrix and Dentrix Ascend increased nearly 40% from the prior year.
On the flip side, the current macroeconomic environment across the globe is adversely affecting the company’s financial operations. Particularly, inflation and recession are adversely affecting HSIC’s results of operations. Accordingly, governments and insurance companies continue to look for ways to contain the rising cost of healthcare. With the sustained macroeconomic pressures, the company may struggle to keep in check its cost of revenue and operating expenses. During the second quarter, Henry Schein’s SG&A expenses rose 4% year over year.
Fluctuating currency rates also hamper the growth of a multinational like Henry Schein, given that it derives a substantial amount of its revenues from international markets. During the second quarter, HSIC’s total revenues were negatively impacted by 0.4% due to unfavorable foreign currency movements.
Over the past year, shares of Henry Schein rose 11.6% compared with a 22.6% surge of the industry.
Key Picks
Some better-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Quanterix (QTRX - Free Report) and Intuitive Surgical (ISRG - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics stock has risen 27.3% in the past year. Earnings estimates for Haemonetics have remained constant at $3.82 for 2023 and $4.07 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have remained constant at 97 cents in the past 30 days. Shares of the company have surged 221.9% in the past year compared with the industry’s rise of 1.4%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for Intuitive Surgical’s 2023 earnings have remained constant at $5.57 per share in the past 30 days. Shares of the company have gained 57.3% in the past year compared with the industry’s growth of 3.8%.
ISRG’s earnings beat estimates in three of the trailing four quarters and missed in one, the average surprise being 4.19%. In the last reported quarter, Intuitive Surgical delivered an earnings surprise of 7.58%.