We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Dentsply (XRAY) Up 15.3% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Dentsply International (XRAY - Free Report) . Shares have added about 15.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dentsply due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
DENTSPLY SIRONA reported third-quarter 2020 adjusted earnings per share of 67 cents, beating the Zacks Consensus Estimate by 139.3%. The figure grew 17.5% year over year.
The company reported revenues of $894.8 million, which fell 7% from the year-ago quarter due to the impact of the COVID-19 pandemic. However, the top line beat the Zacks Consensus Estimate by 5.9%. Per management, sales declined 8.8% on an organic basis.
Business Details
Consumables
Consumable revenues fell 8.6% year over year and 9.3% on an organic basis in the third quarter to $391 million. Per management, the decline in organic sales can be attributed to the Rest of World and Europe, partially offset by improvement in U.S. sales. Sales of all product groups fell year over year, with Laboratory sales being the most affected category.
Technologies & Equipment
Technologies & Equipment revenues declined 5.7% year over year to $504 million in the reported quarter. On an organic basis, net sales fell 8.5%. Per management, Healthcare saw positive organic growth and Equipment & Instruments sales were consistent, offset by a decrease in Digital Dentistry.
Revenues by Geography
In the United States, revenues fell 5.4% to $318.7 million. Rest of World revenues declined 14.6% year over year to $225.3 million. European revenues dropped 2.9% year on year to $350.8 million.
Margin Analysis
Gross profit in the reported quarter amounted to $442 million, down 13.9% on a year-over-year basis. Gross margin was 49.4%, down 399 basis points (bps).
Adjusted operating profit came in at $100 million, down 12.5%. Adjusted operating margin was 11.2%, down 70 bps.
Financial Condition
DENTSPLY SIRONA exited the third quarter with cash and cash equivalents of $1.27 billion, up from $1.11 billion on a sequential basis.
Cumulative net cash provided by operating activities was $371.5 million compared with $333.5 million in the year-ago period.
2020 Guidance
Due to the continued uncertainty regarding the duration and impact of the COVID-19 pandemic on the company’s business, the company has not issued 2020 guidance.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 7.28% due to these changes.
VGM Scores
At this time, Dentsply has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dentsply has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Dentsply (XRAY) Up 15.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Dentsply International (XRAY - Free Report) . Shares have added about 15.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Dentsply due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
DENTSPLY SIRONA Q3 Earnings & Revenues Beat Estimates
DENTSPLY SIRONA reported third-quarter 2020 adjusted earnings per share of 67 cents, beating the Zacks Consensus Estimate by 139.3%. The figure grew 17.5% year over year.
The company reported revenues of $894.8 million, which fell 7% from the year-ago quarter due to the impact of the COVID-19 pandemic. However, the top line beat the Zacks Consensus Estimate by 5.9%. Per management, sales declined 8.8% on an organic basis.
Business Details
Consumables
Consumable revenues fell 8.6% year over year and 9.3% on an organic basis in the third quarter to $391 million. Per management, the decline in organic sales can be attributed to the Rest of World and Europe, partially offset by improvement in U.S. sales. Sales of all product groups fell year over year, with Laboratory sales being the most affected category.
Technologies & Equipment
Technologies & Equipment revenues declined 5.7% year over year to $504 million in the reported quarter. On an organic basis, net sales fell 8.5%. Per management, Healthcare saw positive organic growth and Equipment & Instruments sales were consistent, offset by a decrease in Digital Dentistry.
Revenues by Geography
In the United States, revenues fell 5.4% to $318.7 million. Rest of World revenues declined 14.6% year over year to $225.3 million. European revenues dropped 2.9% year on year to $350.8 million.
Margin Analysis
Gross profit in the reported quarter amounted to $442 million, down 13.9% on a year-over-year basis. Gross margin was 49.4%, down 399 basis points (bps).
Adjusted operating profit came in at $100 million, down 12.5%. Adjusted operating margin was 11.2%, down 70 bps.
Financial Condition
DENTSPLY SIRONA exited the third quarter with cash and cash equivalents of $1.27 billion, up from $1.11 billion on a sequential basis.
Cumulative net cash provided by operating activities was $371.5 million compared with $333.5 million in the year-ago period.
2020 Guidance
Due to the continued uncertainty regarding the duration and impact of the COVID-19 pandemic on the company’s business, the company has not issued 2020 guidance.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 7.28% due to these changes.
VGM Scores
At this time, Dentsply has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dentsply has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.