Henry Schein (HSIC) reports earnings tomorrow: what to expect

What happened

Henry Schein, a dental and medical products company, will report earnings Tuesday before market hours. Last quarter it reported revenues of $3.46 billion, up 6.7% year on year, beating analysts' revenue expectations. This quarter the market expects revenue growth of 4.2% year on year.

Confirmed

Global impact / market context

Slowing expected growth, from 5.2% a year ago to 4.2% now, suggests the company may be losing momentum. Because Henry Schein has missed Wall Street's revenue estimates multiple times in two years, another miss could hurt investor confidence.

Analyst inference

Peers Align Technology and Intuitive Surgical already reported results, giving hints about demand for healthcare equipment and supplies. Align grew revenue 1.9% and Intuitive 21.7%, so Henry Schein's coming report will show whether its own sales trends are improving or lagging.

Analyst inference

What to watch

1. Watch whether Henry Schein's revenue grows 4.2% year on year this quarter, down from the 5.2% increase recorded in the same quarter last year. Confirmed
2. Watch whether Henry Schein meets Wall Street's revenue estimates, since the article says it has missed them multiple times over the last two years. Confirmed
3. Watch how management describes demand for dental and medical products, which signals whether revenue growth can hold up or keep slowing. Analyst inference

Evidence

• stockstory.org