) reviewed its 2012 performance, discussed competitive dynamics
and current business environment during the Barclays Global
The company also discussed its restructuring efforts for
improved administration and management of its businesses. The
initiatives are expected to support Henry Schein's plan of
Henry Schein remains optimistic about its largest
business-domestic dental franchise, by which it expects to
demonstrate broad-based growth on the back of a solid U.S.
equipment market for 2013. Moreover, Henry Schein asserts that
the growth of its franchise should accelerate with economic
recovery in the U.S.
Although the demand for dental consumables was adversely affected
in the most recent quarter due to Hurricane Sandy, management
asserts that the end markets remained stable during the quarter.
Further, the market trends are expected to improve in the ongoing
year, especially in the second half of 2013. Considering this
fact, the company expects to perform well in the U.S. market.
As far as the European market is concerned, management remains
watchful of the capital spending environment and other
macroeconomic concerns in the region, especially Southern Europe.
The company is not expecting any immediate improvement in the
Henry Schein has been on an acquisition spree. However, the
company is also keeping a keen eye on similar advances by other
players in the market. As per management, the takeover of PSSI
World Medical by
) does not change the competitive landscape for its medical
franchise in the U.S. Henry Schein witnessed organic growth of 7%
for its global medical business in a low growth environment. This
reflects the company's ability to capture market share.
For its animal health business in the U.S., Henry Schein believes
that it is well placed relative to its competitors to gain market
share. The animal health market is the company's fastest growing
market. The acquisition of McAllister and ImproMed is expected to
further boost Henry Schein's results for this franchise.
Notably, the European economy remains an overhang for Henry
Schein. The industry is plagued by pricing pressure and
competitive tussle for market share gains. We still believe that
the company's diversified business offers resilience against
macroeconomic volatility and a tough competitive landscape.
The stock carries a Zacks Rank #3 (Hold). While we remain on the
sidelines for Henry Schein, we are bullish on
Becton Dickinson and Company
MWI Veterinary Supply
). These stocks carry a Zacks Rank #2 (Buy).
BECTON DICKINSO (BDX): Free Stock Analysis
HENRY SCHEIN IN (HSIC): Free Stock Analysis
MCKESSON CORP (MCK): Free Stock Analysis
MWI VET SUPPLY (MWIV): Free Stock Analysis
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