DENTSPLY SIRONA Inc. (XRAY - Free Report) reported adjusted earnings of 76 cents per share in the second quarter of 2016, which beat the Zacks Consensus Estimate by 6 cents. Earnings improved 4.1% on a year-over-year basis, primarily driven by strong top-line growth.
Notably, DENTSPLY repurchased an additional $100 million of shares and paid $18 million in dividends during the second quarter.
Quarter Details
Net sales increased 46.4% on a year-over-year basis to $1.02 billion, almost in line with the Zacks Consensus Estimate of $698 million. Excluding precious metals content, sales increased roughly 49% from the year-ago quarter to $1 billion. A strong dollar affected DENTSPLY’s top-line growth by nearly 0.7%.
Sales (excluding precious metals) of the combined businesses grew 3.4% at constant currency (cc) exchange rates. Excluding a 1.5% benefit from net acquisitions and a 0.5% unfavorable impact from discontinued products, internal sales growth of the combined company was 2.4%.
In the quarter, the U.S. sales surged 46.3% to $250.1 million, while net sales in Europe increased 37% to $382.2 million. Sales (excluding precious metals) of the combined businesses grew 3.8% at cc in the U.S., while European sales declined 40 basis points (bps).
Net sales in Rest of World increased 76.2% to $256.6 million. Sales (excluding precious metals) in Rest of World of the combined businesses improved 8.6% at cc.
Segment Details
Post the completion of DENTSPLY-SIRONA merger, the business has been organized into two reporting segments: Dental & Healthcare Consumables and Technologies.
Dental & Healthcare Consumables comprises preventive, restorative, instruments, endodontic and laboratory dental products, as well as consumable medical device products. Sales increased 8% to $526.7 million. At cc, sales of the combined entity inched up 3.4% in the quarter.
Technologies consist of dental implants, CAD/CAM systems, imaging systems, treatment centers and orthodontic products. Net sales increased by 155.8% to $478 million. At cc, sales of the combined businesses climbed 3.3% in the quarter. Internal sales growth of the combined businesses was 0.8%, which excluded a 2.5% benefit from net acquisitions.
Acquisition
DENTSPLY announced the acquisition of MIS implants during the quarter. (Read More: DENTSPLY Sirona Set to Acquire MIS Implants for $375M). The acquisition enables the company to enter the implant market, which is worth $1.5 billion.
Guidance
For full-year 2016, DENTSPLY expects revenue growth of 4% to 6% at cc. Adjusted earnings are still forecasted in the band of $2.70 to $2.80 per share.
Zacks Rank & Key Picks
Currently, DENTSPLY carries a Zacks Rank #2 (Buy).
Better-ranked stocks in the broader medical sector include Halyard Health , Merit Medical (MMSI - Free Report) and Masimo Corp. (MASI - Free Report) . All the three stocks carry a Zacks Rank #1 (Strong Buy).
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DENTSPLY SIRONA Inc. (XRAY - Free Report) reported adjusted earnings of 76 cents per share in the second quarter of 2016, which beat the Zacks Consensus Estimate by 6 cents. Earnings improved 4.1% on a year-over-year basis, primarily driven by strong top-line growth.
Notably, DENTSPLY repurchased an additional $100 million of shares and paid $18 million in dividends during the second quarter.
Quarter Details
Net sales increased 46.4% on a year-over-year basis to $1.02 billion, almost in line with the Zacks Consensus Estimate of $698 million. Excluding precious metals content, sales increased roughly 49% from the year-ago quarter to $1 billion. A strong dollar affected DENTSPLY’s top-line growth by nearly 0.7%.
Sales (excluding precious metals) of the combined businesses grew 3.4% at constant currency (cc) exchange rates. Excluding a 1.5% benefit from net acquisitions and a 0.5% unfavorable impact from discontinued products, internal sales growth of the combined company was 2.4%.
In the quarter, the U.S. sales surged 46.3% to $250.1 million, while net sales in Europe increased 37% to $382.2 million. Sales (excluding precious metals) of the combined businesses grew 3.8% at cc in the U.S., while European sales declined 40 basis points (bps).
Net sales in Rest of World increased 76.2% to $256.6 million. Sales (excluding precious metals) in Rest of World of the combined businesses improved 8.6% at cc.
Segment Details
Post the completion of DENTSPLY-SIRONA merger, the business has been organized into two reporting segments: Dental & Healthcare Consumables and Technologies.
Dental & Healthcare Consumables comprises preventive, restorative, instruments, endodontic and laboratory dental products, as well as consumable medical device products. Sales increased 8% to $526.7 million. At cc, sales of the combined entity inched up 3.4% in the quarter.
Technologies consist of dental implants, CAD/CAM systems, imaging systems, treatment centers and orthodontic products. Net sales increased by 155.8% to $478 million. At cc, sales of the combined businesses climbed 3.3% in the quarter. Internal sales growth of the combined businesses was 0.8%, which excluded a 2.5% benefit from net acquisitions.
Acquisition
DENTSPLY announced the acquisition of MIS implants during the quarter. (Read More: DENTSPLY Sirona Set to Acquire MIS Implants for $375M). The acquisition enables the company to enter the implant market, which is worth $1.5 billion.
Guidance
For full-year 2016, DENTSPLY expects revenue growth of 4% to 6% at cc. Adjusted earnings are still forecasted in the band of $2.70 to $2.80 per share.
Zacks Rank & Key Picks
Currently, DENTSPLY carries a Zacks Rank #2 (Buy).
Better-ranked stocks in the broader medical sector include Halyard Health , Merit Medical (MMSI - Free Report) and Masimo Corp. (MASI - Free Report) . All the three stocks carry a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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