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DENTSPLY SIRONA Inc. (XRAY - Free Report) reported second-quarter 2021 adjusted earnings per share (EPS) of 71 cents, beating the Zacks Consensus Estimate of 65 cents by 9.2%. The company had reported a loss of 18 cents per share in the year-ago quarter.
GAAP EPS in the quarter was 45 cents, against the year-ago period’s loss of 44 cents.
Revenues
For the quarter, revenues amounted to $1.07 billion, surpassing the Zacks Consensus Estimate by 6.9%. The top line improved 117.3% year over year. Sales further grew 104.6% on an organic basis.
Business Details
Consumables
Consumable revenues grew 138% year over year and 135.3% on an organic basis in the second quarter to $445 million. Per management, the upside was driven by sales of all product categories rebounding in the quarter.
DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise
Technologies & Equipment revenues were up 104.6% year over year to $622 million in the reported quarter. On an organic basis, net sales rose 85.2%. Recovery in sales across all product categories led to the improvement.
Revenues by Geography
In the United States, revenues skyrocketed 179.4% to $366 million. Rest of World revenues soared 87.5% year over year to $270 million. European revenues surged 99.5% year over year to $431 million.
Margin Analysis
Gross profit in the reported quarter amounted to $598 million, up 239.8% on a year-over-year basis. Gross margin was 56%, expanding 2020 basis points (bps).
Selling, general and administrative expenses were $398 million, up 52.5% from the year-ago quarter. Research and development expenses amounted to $40 million, up 122.2% from the prior-year quarter.
Operating profit was $155 million, against the year-ago quarter’s loss of $104 million.
Financial Condition
DENTSPLY SIRONA exited the second quarter of 2021 with cash and cash equivalents of $332 million, up from $318 million in the first quarter of 2021.
Cumulative net cash provided by operating activities at the end of the second quarter was $263 million compared with $164 million in the year-ago period.
2021 Guidance
On the basis of the second-quarter 2021 performance and the sustained gradual recovery in the global dental market, DENTSPLY SIRONA has reaffirmed its 2021 outlook.
The company projects 2021 revenues within $4.10-$4.30 billion, up 23-28% on a reported basis and 18-25% on an organic basis. The Zacks Consensus Estimate for the same is pegged at $4.24 billion.
The company expects an adjusted EPS of $2.75-$2.90, with the anticipation of being at the upper end of the range. The Zacks Consensus Estimate for the same is pegged at $2.86.
Our Take
DENTSPLY SIRONA ended the second quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company saw revenue growth at both Consumables, and Technologies & Equipment segments in the quarter. It witnessed higher revenues in both domestic and international markets. Expansion of gross margin is another plus.
Per management, the second-quarter performance highlights the operational and financial efficiency of the team at DENTSPLY SIRONA along with the resilience of the dental market. Apart from this, its board of directors authorized an increase in its share repurchase program, which buoys optimism.
However, rise in selling, general and administrative expenses remains a concern.
Zacks Rank and Other Key Picks
Currently, DENTSPLY SIRONA carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have already announced their quarterly results are Encompass Health Corporation (EHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Hill-Rom Holdings, Inc. . While Encompass Health sports a Zacks Rank #1 (Strong Buy), both West Pharmaceutical and Hill-Rom carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Encompass Health reported second-quarter 2021 adjusted EPS of $1.17, which beat the Zacks Consensus Estimate by 15.8%. Second-quarter revenues of $1.3 billion outpaced the consensus mark by 1.5%.
West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%.
Hill-Rom reported third-quarter fiscal 2021 adjusted EPS of $1.38, which beat the Zacks Consensus Estimate by 2.9%. Fiscal third-quarter revenues of $717.7 million outpaced the consensus mark by 1.6%.
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DENTSPLY SIRONA (XRAY) Q2 Earnings & Revenues Beat Estimates
DENTSPLY SIRONA Inc. (XRAY - Free Report) reported second-quarter 2021 adjusted earnings per share (EPS) of 71 cents, beating the Zacks Consensus Estimate of 65 cents by 9.2%. The company had reported a loss of 18 cents per share in the year-ago quarter.
GAAP EPS in the quarter was 45 cents, against the year-ago period’s loss of 44 cents.
Revenues
For the quarter, revenues amounted to $1.07 billion, surpassing the Zacks Consensus Estimate by 6.9%. The top line improved 117.3% year over year. Sales further grew 104.6% on an organic basis.
Business Details
Consumables
Consumable revenues grew 138% year over year and 135.3% on an organic basis in the second quarter to $445 million. Per management, the upside was driven by sales of all product categories rebounding in the quarter.
DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise
DENTSPLY SIRONA Inc. price-consensus-eps-surprise-chart | DENTSPLY SIRONA Inc. Quote
Technologies & Equipment
Technologies & Equipment revenues were up 104.6% year over year to $622 million in the reported quarter. On an organic basis, net sales rose 85.2%. Recovery in sales across all product categories led to the improvement.
Revenues by Geography
In the United States, revenues skyrocketed 179.4% to $366 million. Rest of World revenues soared 87.5% year over year to $270 million. European revenues surged 99.5% year over year to $431 million.
Margin Analysis
Gross profit in the reported quarter amounted to $598 million, up 239.8% on a year-over-year basis. Gross margin was 56%, expanding 2020 basis points (bps).
Selling, general and administrative expenses were $398 million, up 52.5% from the year-ago quarter. Research and development expenses amounted to $40 million, up 122.2% from the prior-year quarter.
Operating profit was $155 million, against the year-ago quarter’s loss of $104 million.
Financial Condition
DENTSPLY SIRONA exited the second quarter of 2021 with cash and cash equivalents of $332 million, up from $318 million in the first quarter of 2021.
Cumulative net cash provided by operating activities at the end of the second quarter was $263 million compared with $164 million in the year-ago period.
2021 Guidance
On the basis of the second-quarter 2021 performance and the sustained gradual recovery in the global dental market, DENTSPLY SIRONA has reaffirmed its 2021 outlook.
The company projects 2021 revenues within $4.10-$4.30 billion, up 23-28% on a reported basis and 18-25% on an organic basis. The Zacks Consensus Estimate for the same is pegged at $4.24 billion.
The company expects an adjusted EPS of $2.75-$2.90, with the anticipation of being at the upper end of the range. The Zacks Consensus Estimate for the same is pegged at $2.86.
Our Take
DENTSPLY SIRONA ended the second quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company saw revenue growth at both Consumables, and Technologies & Equipment segments in the quarter. It witnessed higher revenues in both domestic and international markets. Expansion of gross margin is another plus.
Per management, the second-quarter performance highlights the operational and financial efficiency of the team at DENTSPLY SIRONA along with the resilience of the dental market. Apart from this, its board of directors authorized an increase in its share repurchase program, which buoys optimism.
However, rise in selling, general and administrative expenses remains a concern.
Zacks Rank and Other Key Picks
Currently, DENTSPLY SIRONA carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have already announced their quarterly results are Encompass Health Corporation (EHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Hill-Rom Holdings, Inc. . While Encompass Health sports a Zacks Rank #1 (Strong Buy), both West Pharmaceutical and Hill-Rom carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Encompass Health reported second-quarter 2021 adjusted EPS of $1.17, which beat the Zacks Consensus Estimate by 15.8%. Second-quarter revenues of $1.3 billion outpaced the consensus mark by 1.5%.
West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%.
Hill-Rom reported third-quarter fiscal 2021 adjusted EPS of $1.38, which beat the Zacks Consensus Estimate by 2.9%. Fiscal third-quarter revenues of $717.7 million outpaced the consensus mark by 1.6%.