Sirona Dental Systems, Inc.

Sirona Dental Systems, Inc. (SIRO - Snapshot Report) recently hit a new all-time high at $51.88 after reporting another strong quarter that beat analyst expectations. With a solid 10% growth projection and discounted P/E, this Zacks #1 rank stock is a beaming momentum pick.

Company Description

Sirona Dental Systems, Inc. together with its subsidiaries, manufactures and sells dental equipment worldwide. The company was founded in 1882 and has a market cap of $2.75 billion.

With earnings season grinding away, we got an update on Sirona's business on Feb 4 when the company reported excellent Q4 results that came in well ahead of expectations.

Fourth-Quarter Results

Revenue for the period was up 10% from last year to $236 million. Earnings were also strong at 96 cents, 19% ahead of the Zacks Consensus Estimate.

The company's Treatment Centers segment saw the biggest gain, up 13.5% from last year. Sirona also saw solid international gains, with revenue outside the United States up 14% on strong performances in Germany and Asia Pacific.

Margins were also on the up swing, with gross margin climbing to 55.3% from 52.3 last year.

Financial Profile

Sirona's used the good quarter to strengthen its financial profile, with net debt of falling $16.5 million to $102.5 million after cash and equivalents increased $49 million to $266 million.

Estimates

We saw some decent movement in estimates off the good quarter, with the current year adding 11 cents to $2.88 and the next-year estimate gaining 13 cents to $3.17, a solid 10% growth projection.

Valuation

But in spite of the nice gains, SIRO still has value, trading with a forward P/E of 17X against its peer average of 21X.

2-Year Chart

On the chart, SIRO has been trending higher for most of the last two year, with shares getting an extra boost to a new all-time high on the good quarter. Look for support from the long-term trend on any weakness, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.

Read the full analyst report on SIRO