Sirona Dental Inc.

Sirona Dental Inc. (SIRO - Snapshot Report) is one of those rare companies that has both value and growth characteristics as its PEG ratio stands at just 0.8.

Sirona Dental manufactures cutting edge dental products, including CAD CAM restoration systems (CEREC), digital intra-oral, panoramic and 3D imaging systems and dental treatment centers. It has customers worldwide.

Sirona Beat By 30% in the Fiscal Third Quarter

On Aug 3, for the fourth quarter in a row, Sirona surprised on the Zacks Consensus Estimate. Earnings per share were 65 cents compared to the consensus of 50 cents.

Revenue rose just 1% to $182.4 million. Imaging Systems saw the biggest gains, as sales rose 17.7%. Instruments and Treatment Centers both declined, by 4.8% and 15.3%, respectively.

Sales in the United States were still hot, as they jumped 33.7% on strong demand for the Galileos 3D imaging system.

Revenue fell 10.2% outside the U.S. although the Asia/Pacific region still grew, especially in China, Australia and Japan.

Outlook for the Fourth Quarter

The company is optimistic about the fiscal fourth quarter. Revenue is expected to increase in the low to mid-single digits.

CAD CAM revenue is forecast to be lower compared to the year ago quarter but the company expects growth in other segments to offset this weakness.

Zacks Consensus Estimates Rise

Even without any EPS guidance from the company, analysts have been revising their estimates higher.

9 estimates have moved higher for 2010 in the last 30 days, pushing the consensus up 15 cents to $2.60 per share.

This is earnings growth of 34%.

Analysts are also bullish about fiscal 2011, as 9 estimates have moved higher on the full year in the last 30 days for it as well. The consensus is up 13 cents to $2.79 per share, or 7.2% earnings growth over fiscal 2010.

Value Fundamentals

Sirona is trading at just 12x forward earnings which is well under the industry average of 18.7. It has a price-to-book ratio of 2.4, well within the value parameters.

The company also has a stellar return on equity (ROE) of 20.1%, which crushes the industry average of 11.1%.

Sirona is a Zacks #1 Rank (strong buy) stock.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.

Read the full analyst report on SIRO