Earnings Beat: Henry Schein, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Last week, you might have seen that Henry Schein, Inc. (NASDAQ:HSIC) released its quarterly result to the market. The early response was not positive, with shares down 5.5% to US$70.50 in the past week. Henry Schein reported US$3.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.92 beat expectations, being 8.1% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Henry Schein from 15 analysts is for revenues of US$13.7b in 2026. If met, it would imply a reasonable 2.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 21% to US$4.20. In the lead-up to this report, the analysts had been modelling revenues of US$13.7b and earnings per share (EPS) of US$3.96 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Henry Schein

There's been no major changes to the consensus price target of US$87.21, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Henry Schein at US$100.00 per share, while the most bearish prices it at US$64.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Henry Schein's past performance and to peers in the same industry. It's clear from the latest estimates that Henry Schein's rate of growth is expected to accelerate meaningfully, with the forecast 3.6% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.8% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Henry Schein is expected to grow slower than the wider industry.

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The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Henry Schein's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Henry Schein's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$87.21, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Henry Schein going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Henry Schein (1 is a bit concerning!) that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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