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DENTSPLY SIRONA (XRAY) to Post Q1 Earnings: What's in Store?

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DENTSPLY SIRONA Inc. (XRAY - Free Report) is scheduled to release first-quarter 2022 results on May 5, before the opening bell.

In the last reported quarter, the company delivered a negative earnings surprise of 3.8%. Its earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 10.2%.

Q1 Estimates

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $965.5 million, indicating a decline of 5.9% from the year-ago quarter. The consensus mark for earnings stands at 50 cents per share, suggesting a decline of 30.6% from the prior-year quarter.

Factors to Note

DENTSPLY SIRONA’s Technologies & Equipment segment witnessed growth in the fourth quarter of 2021. Strength in CAD/CAM (computer-aided-design and computer-aided-manufacturing), Implants and Orthodontics contributed to the improvement. This momentum is likely to have continued in the first quarter as well.

Per management, the fourth-quarter performance reflects the resilience of the dental market and its solid global product portfolio. This trend is likely to have sustained in the first quarter.

Per the fourth-quarter 2021 earnings call, management announced the launch of Primeprint, a medical-grade, a highly automated 3D printer that can aid dentists to boost workflows and practice efficiency. Apart from being an easy-to-use device, this 3D printer allows dentists to delegate many of the tasks around 3D printing to their staff. Primeprint provides complete integration with the CEREC system and will enable the dentist to produce things, like night guards, surgical guides and full-scale models, in a quick and inexpensive manner.

DENTSPLY SIRONA Inc. Price and EPS Surprise

DENTSPLY SIRONA Inc. Price and EPS Surprise

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

During the third quarter of 2021, the company launched ProTaper Ultimate, which is the first major endodontic platform innovation introduced in its endo business in more than five years. As part of the new platform, this will include new files of biosymmetric sealer and a new disinfection device.

These developments are likely to have contributed to the company’s first-quarter performance.

Per the third-quarter 2021 earnings call, demand had been high for digital devices such as Primescan and imaging equipment such as the company’s new Axeos unit. DENTSPLY has been witnessing a rising trend in dental offices upgrading from 2D to 3D units, which has been observed in all global markets. This, in turn, is likely to have benefited the company’s first-quarter performance.

Sustained improvement in sales trends owing to reopening of dental offices and rise in patient visits might have favored the company’s performance in the to-be-reported quarter.

However, DENTSPLY SIRONA’s significant international presence may have weighed on the first-quarter performance. The impact of foreign exchange headwinds might 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 not the case here as you will see.

Earnings ESP: DENTSPLY SIRONA has an Earnings ESP of 0.00%. 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 #4 (Sell).

Stocks Worth a Look

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

Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here.

Zimmer Biomet's long-term earnings growth rate is estimated at 5.8%. The company's earnings yield of 5.4% compares favorably with the industry's 0.9%.

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of 3.

Haemonetics' long-term earnings growth rate is estimated at 10%. The company's earnings yield of 5.5% compares favorably with the industry's 0.9%.

Meridian Bioscience, Inc. (VIVO - Free Report) has an Earnings ESP of +26.32% and a Zacks Rank of 2.

Meridian Bioscience's historical earnings growth rate stands at 16.3%. The company's earnings yield of 5.4% compares favorably with the industry's 0.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.