Henry Schein's adjusted EPS of $1.35 in the second-quarter of 2014
increased 9.8% year over year and also beat the Zacks Consensus
Estimate by 1.5%. Revenues rose 9.3% to $2.62 billion, edging past
the Zacks Consensus Estimate by 1.8%. Animal Health continued to
perform well while the core dental business picked up. The recent
strategic acquisitions are expected to add value to the business.
With the animal health market growing at a rapid pace and
showcasing favorable trends, we are confident about further sales
improvement. However, the overall macroeconomic uncertainty remains
as overhang. Further, intense competition and currency fluctuations
warrant caution. Moreover, as GPOs gain prominence, pricing
pressure is inevitable. We still believe that the company's
diversified distribution business offers resilience against
macroeconomic volatility. Thus, we remain Neutral on the stock.
Headquartered in Melville, NY, Henry Schein Inc. (HSIC) is a
leading distributor of health care products and services across the
globe. The company serves office-based dental, medical and animal
health practitioners, dental laboratories, government as well as
institutional health care clinics and other alternate-care sites.
Presently, Henry Schein operates in 25 countries.
At the end of 2012, the company served a vast distribution
network worldwide with a selection of over 96,000 branded products.
Additionally, Henry Schein offers other value-added services such
as practice management software, e-commerce solutions and an array
of financial services.
Henry Schein's four businesses Dental, Animal Health, Medical
and Technology and Value-Added Services serve millions of customers
worldwide. In 2013, the company recorded global net revenue of
$9.56 billion, with annualized growth of 6.9%.
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