Analyst Estimates: Here's What Brokers Think Of Henry Schein, Inc. (NASDAQ:HSIC) After Its Third-Quarter Report

As you might know, Henry Schein, Inc. (NASDAQ:HSIC) recently reported its third-quarter numbers. Revenues of US$3.5b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.06, missing estimates by 3.1%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Henry Schein from 13 analysts is for revenues of US$14.4b in 2027. If met, it would imply a modest 4.8% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 34% to US$5.11. Before this earnings report, the analysts had been forecasting revenues of US$14.4b and earnings per share (EPS) of US$4.91 in 2027. So the consensus seems to have become somewhat more optimistic on Henry Schein's earnings potential following these results.

See our latest analysis for Henry Schein

There's been no major changes to the consensus price target of US$96.93, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Henry Schein, with the most bullish analyst valuing it at US$110 and the most bearish at US$64.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Henry Schein shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Henry Schein's growth to accelerate, with the forecast 3.8% annualised growth to the end of 2027 ranking favourably alongside historical growth of 1.5% per annum 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 5.2% per year. So it's clear that despite the acceleration in growth, Henry Schein is expected to grow meaningfully slower than the industry average.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$96.93, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Henry Schein analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Henry Schein that you need to take into consideration.

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