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Henry Schein (HSIC) Buys TriMed to Expand in Orthopedic Space
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Henry Schein, Inc. (HSIC - Free Report) has recently completed the acquisition of orthopedic player TriMed for an undisclosed financial term. Integration of TriMed’s business will help the company to provide a wider range of surgical solutions to the existing Integrated Delivery Networks and Ambulatory Surgery Center customers. This will strengthen HSIC’s long-standing relationship with them.
Headquartered in Santa Clarita, CA, TriMed is a global developer of solutions for the orthopedic treatment of lower extremities (foot and ankle) and upper extremities (primarily hand and wrist).
The latest development aligns with Henry Schein’s long-standing strategy of investing in high-growth market opportunities.
Financial Implications
The deal, initiated in December 2023, is projected to be neutral to non-GAAP earnings per share in 2024 and accretive thereafter.
Strategic Synergy
Collaboration with TriMed will offer Henry Schein a platform to position itself as a prominent producer and supplier in the orthopedic market's Foot and Ankle, Hand and Wrist extremity sectors. HSIC believes that the skilled leadership team is well-positioned to benefit from the current integrated delivery network and ambulatory surgery center customers.
Per management, entering the extremity segment with the complementary portfolio of TriMed will extend Henry Schein’s Brasseler Medical orthopedic cutting accessories and revision instrument solutions.
Management also noted that upper and lower extremities are among the fastest-growing segments of orthopedics, representing a total addressable market of more than $5.5 billion. With its strategic acquisitions, Henry Schein is confident about accelerating the reach of TriMed and Extremity on a global basis.
Image Source: Zacks Investment Research
Industry Prospects
Per a report by Grand View Research, the global orthopedic devices market was estimated at $72.9 billion in 2023 and is projected to witness a CAGR of 5.3% from 2024 to 2030. The market is driven by a high incidence of orthopedic disorders, such as a growing aging population, degenerative bone disease and an increasing instance of road accidents. The early onset of musculoskeletal disorders caused by sedentary routines and obesity is also projected to fuel growth.
Share Price Performance
In the past year, HSIC’s shares have lost 13.2% against the industry’s growth of 9.5%.
Zacks Rank and Key Picks
Henry Schein carries a Zacks Rank #3 (Hold) at present.
DaVita’s shares have risen 65.3% in the past year. Earnings estimates for DaVita have risen from $8.97 per share to $9.23 in 2024 and from $9.77 to $10.01 in 2025 in the past 30 days.
DVA’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 35.6%. In the last reported quarter, it posted an earnings surprise of 22.2%.
Estimates for Stryker’s 2024 earnings per share (EPS) have remained constant at $11.86 in the past 30 days. Shares of the company have risen 21.5% in the past year compared with the industry’s growth of 4.6%.
SYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.1%. In the last reported quarter, it delivered an earnings surprise of 5.8%.
Estimates for Cardinal Health’s 2024 EPS have moved up to $7.29 from $7.28 in the past 30 days. Shares of the company have surged 45% in the past year compared with the industry’s 11.7% growth.
CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%. In the last reported quarter, it delivered an earnings surprise of 16.7%.
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Henry Schein (HSIC) Buys TriMed to Expand in Orthopedic Space
Henry Schein, Inc. (HSIC - Free Report) has recently completed the acquisition of orthopedic player TriMed for an undisclosed financial term. Integration of TriMed’s business will help the company to provide a wider range of surgical solutions to the existing Integrated Delivery Networks and Ambulatory Surgery Center customers. This will strengthen HSIC’s long-standing relationship with them.
Headquartered in Santa Clarita, CA, TriMed is a global developer of solutions for the orthopedic treatment of lower extremities (foot and ankle) and upper extremities (primarily hand and wrist).
The latest development aligns with Henry Schein’s long-standing strategy of investing in high-growth market opportunities.
Financial Implications
The deal, initiated in December 2023, is projected to be neutral to non-GAAP earnings per share in 2024 and accretive thereafter.
Strategic Synergy
Collaboration with TriMed will offer Henry Schein a platform to position itself as a prominent producer and supplier in the orthopedic market's Foot and Ankle, Hand and Wrist extremity sectors. HSIC believes that the skilled leadership team is well-positioned to benefit from the current integrated delivery network and ambulatory surgery center customers.
Per management, entering the extremity segment with the complementary portfolio of TriMed will extend Henry Schein’s Brasseler Medical orthopedic cutting accessories and revision instrument solutions.
Management also noted that upper and lower extremities are among the fastest-growing segments of orthopedics, representing a total addressable market of more than $5.5 billion. With its strategic acquisitions, Henry Schein is confident about accelerating the reach of TriMed and Extremity on a global basis.
Image Source: Zacks Investment Research
Industry Prospects
Per a report by Grand View Research, the global orthopedic devices market was estimated at $72.9 billion in 2023 and is projected to witness a CAGR of 5.3% from 2024 to 2030. The market is driven by a high incidence of orthopedic disorders, such as a growing aging population, degenerative bone disease and an increasing instance of road accidents. The early onset of musculoskeletal disorders caused by sedentary routines and obesity is also projected to fuel growth.
Share Price Performance
In the past year, HSIC’s shares have lost 13.2% against the industry’s growth of 9.5%.
Zacks Rank and Key Picks
Henry Schein carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are DaVita (DVA - Free Report) , Stryker (SYK - Free Report) and Cardinal Health (CAH - Free Report) . While DaVita presently sports a Zacks Rank #1 (Strong Buy), Stryker and Cardinal Health carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have risen 65.3% in the past year. Earnings estimates for DaVita have risen from $8.97 per share to $9.23 in 2024 and from $9.77 to $10.01 in 2025 in the past 30 days.
DVA’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 35.6%. In the last reported quarter, it posted an earnings surprise of 22.2%.
Estimates for Stryker’s 2024 earnings per share (EPS) have remained constant at $11.86 in the past 30 days. Shares of the company have risen 21.5% in the past year compared with the industry’s growth of 4.6%.
SYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.1%. In the last reported quarter, it delivered an earnings surprise of 5.8%.
Estimates for Cardinal Health’s 2024 EPS have moved up to $7.29 from $7.28 in the past 30 days. Shares of the company have surged 45% in the past year compared with the industry’s 11.7% growth.
CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%. In the last reported quarter, it delivered an earnings surprise of 16.7%.