(Reuters) -Medical equipment distributor Henry Schein raised its annual profit forecast after beating Wall Street estimates for third-quarter results on Tuesday, driven by strong sales in its dental and medical units.
Shares of the Melville, New York-based company were up 8.3% in premarket trading.
The company has benefited from strong growth in its dental equipment business in Europe, like peer and Invisalign-maker Align Technology, which raised its fourth-quarter revenue forecast and beat third-quarter estimates last week.
Henry Schein CEO Stanley Bergman said the distributor is “once again focused on driving growth now that the cyber incident is fully behind us.”
A cybersecurity breach, which the company disclosed in 2023, had disrupted its manufacturing and distribution businesses.
Henry Schein also said its board reached an agreement with KKR to allow the private equity firm to increase its stake in the company to up to 19.9%.
KKR became the largest non-index fund shareholder in January after taking a 12% stake and securing board representation.
“With continued input from KKR, we have made good progress on advancing the value creation initiatives we announced last quarter … we have the opportunity to deliver over $200 million of improvements to operating income over the next few years,” said Bergman.
The company now expects 2025 adjusted profit per share of $4.88 to $4.96, up from its previous projection of $4.80 to $4.94.
Henry Schein’s quarterly revenue came in at $3.34 billion, beating estimates of $3.28 billion, according to data compiled by LSEG.
Sales from its dental equipment unit rose 4.8% to $1.71 billion and that from its medical equipment segment rose 4.7% to $1.13 billion.
On an adjusted basis, the company earned quarterly profit per share of $1.38, compared with analysts’ average estimate of $1.28.
(Reporting by Sahil Pandey and Puyaan Singh in Bengaluru; Editing by Sahal Muhammed)
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