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DENTSPLY SIRONA (XRAY) to Post Q4 Earnings: What's in Store?

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DENTSPLY SIRONA Inc. (XRAY - Free Report) is scheduled to release fourth-quarter 2020 results on Mar 1, before the opening bell.

In the last reported quarter, the company delivered earnings surprise of 139.3%.

Q4 Estimates

For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $1 billion, indicating a decline of 9.9% from the year-ago quarter. The consensus mark for earnings stands at 64 cents per share, suggesting a slump of 12.3% from the prior-year quarter.

Factors to Note

DENTSPLY SIRONA’s Consumables segment is likely to have witnessed decline in revenues in the fourth quarter. Fall in organic sales in Rest of World and Europe, and a decline in sales of all product groups might have weighed on the segment’s to-be-reported quarter’s performance.

Moreover, the company’s Technology & Equipment segment’s fourth-quarter results are likely to reflect weak performance due to a decrease in Digital Dentistry.

The company’s CAD/CAM is a dental imaging platform and a significant presence in global dental markets. Product launches and innovation in this area might have driven CAD/CAM sales in the to-be-reported quarter. This, in turn, is likely to have contributed to the company’s fourth-quarter performance in the United States.

However, the impact of the ongoing pandemic may have hindered the company’s dental imaging platform’s results in the to-be-reported quarter.

DENTSPLY SIRONA Inc. Price and EPS Surprise

DENTSPLY SIRONA Inc. Price and EPS Surprise

DENTSPLY SIRONA Inc. price-eps-surprise | DENTSPLY SIRONA Inc. Quote

Nonetheless, DENTSPLY SIRONA’s Primescan — a digital impression scanner, and Primemill, another addition to the CEREC product portfolio in January, are likely to have positively impacted the company’s fourth-quarter performance.

Additionally, per the second-quarter 2020 earnings call, management announced two portfolio shaping activities that will further consolidate its manufacturing footprint, boost productivity and lower fixed costs. This initiative is likely to have favored the company’s performance in the quarter to be reported.

The company’s growth strategy has been focused on product innovation, and research and development (R&D), which may have benefited the company’s fourth-quarter performance. Apart from this, solid track record of innovation and a dedicated, passionate workforce are likely to have contributed to the to-be-reported quarter’s performance.

However, DENTSPLY SIRONA’s significant international presence may have weighed on the company’s fourth-quarter performance. Foreign exchange headwind is likely to get reflected in the to-be-reported quarter’s results.

What Our Quantitative Model Suggests

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is the case here as you will see.

Earnings ESP: DENTSPLY SIRONA has an Earnings ESP of +2.09%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: DENTSPLY SIRONA carries a Zacks Rank #2.

Other Stocks Worth a Look

Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.

Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) has an Earnings ESP of +5.61% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Option Care Health, Inc. (OPCH - Free Report) has an Earnings ESP of +46.94% and a Zacks Rank of 2.

HEXO Corp. (HEXO - Free Report) has an Earnings ESP of +33.33% and a Zacks Rank of 3.

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