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DENTSPLY Sirona Grapples with Multiple Issues: Dump Now?
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On Mar 20, we issued an updated research report on NY-based DENTSPLY Sirona Inc. (XRAY - Free Report) – a global leader in the design, development, manufacture and marketing of dental consumables and dental laboratory products. The company currently holds a Zacks Rank #4 (Sell).
Of the major concerns, we believe that the DENTSPLYSirona merger, which was closed in 2016, would generate certain integration headwinds that will hurt results in the near term. Additionally, higher capital expenditure on product development is expected to put margins under pressure.
Secondly, unfavorable foreign exchange rate volatility is expected to hurt growth. The company faces significant pricing pressure due to intensifying competition. DENTSPLY Sirona conducts its operations, both domestic and foreign, under highly competitive market conditions. The size and number of the company’s competitors vary by product line and from region to region.
Meanwhile, for the full year, the company expects adjusted earnings per share in the range of $2.80 to $2.90. This reflects approximately a 15-cent (per share) headwind at the midpoint. At the current exchange rates, the company estimates foreign exchange headwinds in the band of 8 cents and 10 cents per share. Furthermore, management expects more than 120 basis points of ‘growth headwind’ for the full year.
We note that, post the company’s merger with Sirona, the business has been organized into two reporting segments: Dental & Healthcare Consumables and Technologies. In the last reported quarter, Dental & Healthcare Consumables Sales increased 5.6% on a year-over-year basis to $513.3 million. Net sales at the Technologies segment increased 160.9% to $483.2 million.
Share Price Trend
The price performance of DENTSPLY Sirona has been disappointing of late.
Over the last three months, the stock added 5.3%, lower than the Zacks classified Medical/Dental Supplies sub-industry’s gain of almost 8%. However, the stock’s return is nominally better than the S&P 500’s return of 5.1% over the same time frame.
Inogen has a long-term expected earnings growth rate of 17.05%. Notably, the stock represents an impressive one-year return of 82%.
Avinger projects sales growth of 30.6% for the current year. Additionally, the company has a projected EPS growth rate of 39.53% for the current fiscal.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock posted a positive earnings surprise of 1.6% in the last reported quarter.
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DENTSPLY Sirona Grapples with Multiple Issues: Dump Now?
On Mar 20, we issued an updated research report on NY-based DENTSPLY Sirona Inc. (XRAY - Free Report) – a global leader in the design, development, manufacture and marketing of dental consumables and dental laboratory products. The company currently holds a Zacks Rank #4 (Sell).
Of the major concerns, we believe that the DENTSPLYSirona merger, which was closed in 2016, would generate certain integration headwinds that will hurt results in the near term. Additionally, higher capital expenditure on product development is expected to put margins under pressure.
Secondly, unfavorable foreign exchange rate volatility is expected to hurt growth. The company faces significant pricing pressure due to intensifying competition. DENTSPLY Sirona conducts its operations, both domestic and foreign, under highly competitive market conditions. The size and number of the company’s competitors vary by product line and from region to region.
Meanwhile, for the full year, the company expects adjusted earnings per share in the range of $2.80 to $2.90. This reflects approximately a 15-cent (per share) headwind at the midpoint. At the current exchange rates, the company estimates foreign exchange headwinds in the band of 8 cents and 10 cents per share. Furthermore, management expects more than 120 basis points of ‘growth headwind’ for the full year.
We note that, post the company’s merger with Sirona, the business has been organized into two reporting segments: Dental & Healthcare Consumables and Technologies. In the last reported quarter, Dental & Healthcare Consumables Sales increased 5.6% on a year-over-year basis to $513.3 million. Net sales at the Technologies segment increased 160.9% to $483.2 million.
Share Price Trend
The price performance of DENTSPLY Sirona has been disappointing of late.
Over the last three months, the stock added 5.3%, lower than the Zacks classified Medical/Dental Supplies sub-industry’s gain of almost 8%. However, the stock’s return is nominally better than the S&P 500’s return of 5.1% over the same time frame.
Key Picks
Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corporation . Notably, Inogen sports a Zacks Rank #1 (Strong Buy) while Fluidigm and Avinger carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.05%. Notably, the stock represents an impressive one-year return of 82%.
Avinger projects sales growth of 30.6% for the current year. Additionally, the company has a projected EPS growth rate of 39.53% for the current fiscal.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock posted a positive earnings surprise of 1.6% in the last reported quarter.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>