Updates with conference call comments throughout, analyst comment in paragraph 3
By Puyaan Singh and Sahil Pandey
Nov 4 (Reuters) - Medical equipment distributor Henry Schein HSIC.O 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 7.4%, after it announced a cost saving plan which could add over $200 million to its operating income over the next few years.
"This quantified cost savings initiative is more than we hoped for," said Evercore ISI analyst Elizabeth Anderson.
Henry Schein also said its board reached an agreement with private equity firm KKR KKR.N to allow it 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.
The company plans to execute the cost-savings initiative through measures including automation and accelerating sales of its own branded products, CEO Stanley Bergman said on a call to discuss the quarterly results.
Finance chief Ronald South said the company expects some benefit in 2026 from the cost-saving measures.
The company has benefited from strong growth in its dental equipment business in Europe, like peer and Invisalign-maker Align Technology ALGN.O, which raised its fourth-quarter revenue forecast and beat third-quarter estimates last week.
Bergman said the company is focused on driving growth now that the cyber incident, which it disclosed in 2023, "is fully behind us."
The company now expects 2025 adjusted profit per share of $4.88 to $4.96, up from its previous forecast of $4.80 to $4.94.
Henry Schein's quarterly revenue came in at $3.34 billion for the quarter ended ended September 27, ahead of estimates of $3.28 billion, according to data compiled by LSEG.
On an adjusted basis, the company earned a quarterly profit per share of $1.38, versus analysts' average estimate of $1.28.
(Reporting by Sahil Pandey and Puyaan Singh in Bengaluru; Editing by Sahal Muhammed)
((Sahil.Pandey@thomsonreuters.com;))