What Happened?
Shares of dental and medical products company Henry Schein (NASDAQ: HSIC) jumped 4.8% in the afternoon session after the company reported decent fourth-quarter 2025 financial results where revenue surpassed Wall Street's expectations, but earnings fell short. The dental and medical products distributor posted quarterly sales of $3.44 billion, a 7.7% increase year on year that beat analyst forecasts. Investors appeared to focus on the strong top-line performance, which was supported by a 4.9% rise in organic revenue. However, the results were not entirely positive, as the company's GAAP profit of $0.85 per share missed Wall Street's consensus estimates by 16.4%. Overall, the market's positive reaction suggests that the better-than-expected sales outweighed the disappointment from the earnings miss for the quarter.
After the initial pop the shares cooled down to $83.74, up 3.9% from previous close.
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What Is The Market Telling Us
Henry Schein’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 9.7% on the news that the company reported second-quarter earnings that missed profit expectations and showed a year-over-year decline. The healthcare products distributor posted an adjusted earnings per share of $1.10, which fell short of analyst forecasts and decreased 10.6% compared to the prior year. While revenues of $3.24 billion slightly beat estimates, investors appeared concerned with the company's shrinking profitability. The results stemmed from softer demand for its dental products in the United States. Furthermore, the company's net income dropped to $86 million from $104 million in the same period last year. Despite the weak quarterly performance, Henry Schein reaffirmed its full-year guidance for 2025.
Henry Schein is up 9% since the beginning of the year, and at $83.74 per share, has set a new 52-week high. Investors who bought $1,000 worth of Henry Schein’s shares 5 years ago would now be looking at an investment worth $1,288.
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