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.
DENTSPLY SIRONA Inc. (XRAY - Free Report) reported first-quarter 2021 adjusted earnings per share (EPS) of 72 cents, beating the Zacks Consensus Estimate of 55 cents by 30.9%. The figure also grew 67.4% year over year.
Revenues
For the quarter, revenues came in at $1.03 billion, beating the Zacks Consensus Estimate by 10.5%.The top line also rose 17.5% year over year. Sales further grew 12.1% on an organic basis.
Business Details
Consumables
Consumable revenues grew 21.5% year over year and 21.2% on an organic basis in the first quarter to $430 million. Per management, the upside was driven by sales of all product categories rebounding in the quarter.
Technologies & Equipment
Technologies & Equipment revenues grew 14.8% year over year to $597 million in the reported quarter. On an organic basis, net sales rose 5.8%. Per management,the upside was driven by sales restoration in Equipment & Instruments and Implants units. Decrease in Digital Dentistry revenues was partially offset by growth in clear aligners.
Revenues by Geography
In the United States, revenues rose 15.7% to $347 million. Rest of World revenues grew 30.3% year over year to $262 million. Also, European revenues grew 12.1% year over year to $418 million.
Margin Analysis
Gross profit in the reported quarter amounted to $579 million, up 23.7% on a year-over-year basis. Gross margin was 56.4%, expanding 283 basis points (bps).
Adjusted operating profit came in at $157 million, up 109.3% from the year-ago figure. Adjusted operating margin was 15.3%, up 671 bps.
DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise
DENTSPLY SIRONA exited the first quarter of 2021 with cash and cash equivalents of $318 million, down from $438 million in the fourth quarter of 2020.
Net cash provided by operating activities was $49 million compared with $10 million used in operating activities in the year-ago period.
2021 Guidance
The company now projects 2021 revenues within $4.10-$4.30 billion, up from the previously issued $4-$4.3 billion band. This reflects 23-28% growth on a reported basis and 18-25% upside on an organic basis. The Zacks Consensus Estimate for the same is pegged at $4.12 billion.
The company expects an adjusted EPS of $2.75-$2.90, up from the prior guidance of $2.60-$2.80. The Zacks Consensus Estimate for the same is pegged at $2.72.
Our Take
DENTSPLY SIRONA ended the first quarter on a strong note. The company saw revenue growth at both Consumables, and Technologies & Equipment segments in the quarter. It saw higher revenues in both domestic and international markets. The strategic acquisition of Byte, a rapidly-growing direct-to-consumer, doctor-directed clear aligner company in the quarter, is a major positive. The launch of the Axeos imaging system buoys optimism on the stock.
Per management, to strengthen the company’s position, DENTSPLY SIRONA is undertaking a slew of restructuring actions, which will boost revenue growth, expand its margins and streamline the organizational structure. Expansion of both gross margin and adjusted operating margin is another plus.
However, sequential decline in cash and cash equivalents in the first quarter is a concern.
Boston Scientific posted adjusted earnings per share (EPS) of 37 cents for the first quarter of 2021, which exceeded the Zacks Consensus Estimate by 23.3%. Revenues of $2.75 billion also exceeded the Zacks Consensus Estimate by 5.3%.
Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which outpaced the Zacks Consensus Estimate by 12.8%. Revenues of $290.5 million also beat the Zacks Consensus Estimate by 2.6%.
HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion too trumped the Zacks Consensus Estimate by 2.2%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021? Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
DENTSPLY SIRONA (XRAY) Q1 Earnings & Revenues Beat Estimates
DENTSPLY SIRONA Inc. (XRAY - Free Report) reported first-quarter 2021 adjusted earnings per share (EPS) of 72 cents, beating the Zacks Consensus Estimate of 55 cents by 30.9%. The figure also grew 67.4% year over year.
Revenues
For the quarter, revenues came in at $1.03 billion, beating the Zacks Consensus Estimate by 10.5%.The top line also rose 17.5% year over year. Sales further grew 12.1% on an organic basis.
Business Details
Consumables
Consumable revenues grew 21.5% year over year and 21.2% on an organic basis in the first quarter to $430 million. Per management, the upside was driven by sales of all product categories rebounding in the quarter.
Technologies & Equipment
Technologies & Equipment revenues grew 14.8% year over year to $597 million in the reported quarter. On an organic basis, net sales rose 5.8%. Per management,the upside was driven by sales restoration in Equipment & Instruments and Implants units. Decrease in Digital Dentistry revenues was partially offset by growth in clear aligners.
Revenues by Geography
In the United States, revenues rose 15.7% to $347 million. Rest of World revenues grew 30.3% year over year to $262 million. Also, European revenues grew 12.1% year over year to $418 million.
Margin Analysis
Gross profit in the reported quarter amounted to $579 million, up 23.7% on a year-over-year basis. Gross margin was 56.4%, expanding 283 basis points (bps).
Adjusted operating profit came in at $157 million, up 109.3% from the year-ago figure. Adjusted operating margin was 15.3%, up 671 bps.
DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise
DENTSPLY SIRONA Inc. price-consensus-eps-surprise-chart | DENTSPLY SIRONA Inc. Quote
Financial Condition
DENTSPLY SIRONA exited the first quarter of 2021 with cash and cash equivalents of $318 million, down from $438 million in the fourth quarter of 2020.
Net cash provided by operating activities was $49 million compared with $10 million used in operating activities in the year-ago period.
2021 Guidance
The company now projects 2021 revenues within $4.10-$4.30 billion, up from the previously issued $4-$4.3 billion band. This reflects 23-28% growth on a reported basis and 18-25% upside on an organic basis. The Zacks Consensus Estimate for the same is pegged at $4.12 billion.
The company expects an adjusted EPS of $2.75-$2.90, up from the prior guidance of $2.60-$2.80. The Zacks Consensus Estimate for the same is pegged at $2.72.
Our Take
DENTSPLY SIRONA ended the first quarter on a strong note. The company saw revenue growth at both Consumables, and Technologies & Equipment segments in the quarter. It saw higher revenues in both domestic and international markets. The strategic acquisition of Byte, a rapidly-growing direct-to-consumer, doctor-directed clear aligner company in the quarter, is a major positive. The launch of the Axeos imaging system buoys optimism on the stock.
Per management, to strengthen the company’s position, DENTSPLY SIRONA is undertaking a slew of restructuring actions, which will boost revenue growth, expand its margins and streamline the organizational structure. Expansion of both gross margin and adjusted operating margin is another plus.
However, sequential decline in cash and cash equivalents in the first quarter is a concern.
Zacks Rank and Other Key Picks
DENTSPLY SIRONA currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader medical space are Boston Scientific Corporation (BSX - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) , each currently carrying a Zacks Rank of 2 .You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific posted adjusted earnings per share (EPS) of 37 cents for the first quarter of 2021, which exceeded the Zacks Consensus Estimate by 23.3%. Revenues of $2.75 billion also exceeded the Zacks Consensus Estimate by 5.3%.
Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which outpaced the Zacks Consensus Estimate by 12.8%. Revenues of $290.5 million also beat the Zacks Consensus Estimate by 2.6%.
HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion too trumped the Zacks Consensus Estimate by 2.2%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021? Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>