(Reuters) -Henry Schein missed Wall Street estimates for second-quarter profit and maintained its annual forecast on Tuesday, due to softer demand for its dental products in the United States.
Shares of the Melville, New York-based dental and medical products distributor fell nearly 5% in premarket trading.
High interest rates and inflationary pressures have hurt demand for non-urgent procedures such as orthodontic treatment and higher-end restorative dental procedures.
The company said while its sales showed strong growth in international markets, it recorded a slowdown in U.S. orders beginning in May due to economic uncertainty from tariffs, but sales returned to normal by the end of the quarter.
Henry Schein, which has seen declining revenue over the past two years, has come under pressure from investors to diversify its operations to better compete with larger distribution peers.
Private equity firm KKR in January took a 12% stake in Henry Schein, becoming the largest non-index fund shareholder, and reached a deal to add members to the company’s board.
Henry Schein reaffirmed its 2025 adjusted profit per share forecast in the range of $4.80 and $4.94, and annual sales growth of 2% to 4%.
“We expect 2025 to be the base year from which to grow and achieve our previously provided long-term goal of high-single digit to low-double digit earnings growth,” CEO Stanley Bergman said.
On an adjusted basis, the company earned profit per share of $1.10 for the second quarter ended June 28, below analysts’ average estimate of $1.19, according to data compiled by LSEG.
Quarterly revenue came in at $3.24 billion, slightly above estimates of $3.22 billion.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Shailesh Kuber and Shinjini Ganguli)
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