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DENTSPLY SIRONA (XRAY) Falls After Nasdaq's Delinquency Notice
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Shares of DENTSPLY SIRONA (XRAY - Free Report) fell 2.2% on Aug 16, following the receipt of a written notice from The NASDAQ Stock Market (“Nasdaq”) for filing delinquency from the exchange. The notice was sent by the exchange for the company’s non-compliance with the Nasdaq Listing Rules due to the non-filing of quarterly results with the Security Exchange Commission (SEC) for the first and the second quarters of 2022. The timely filing of all periodic reports is one of the requirements for Nasdaq-listed companies.
The company had received a similar notice from Nasdaq in May following the non-filing of the first-quarter results on time.
However, none of these two notices from Nasdaq have any immediate effect.
DENTSPLY SIRONA had submitted a plan to regain compliance, following the first notice, in which it targeted to complete the filing of the quarterly reports by Aug 14, 2022. However, in its second-quarter preliminary results release, the company stated that it had informed the Nasdaq staff that it does not expect to meet the targeted date for filing. It is looking to file an updated plan, which may allow the company to remain listed on the exchange till Nov 7, if accepted.
Audit Committee Investigation Delays Filing
We note that DENTSPLY SIRONA has been unable to file its quarterly reports SEC in time due to an investigation of certain financial reporting matters initiated by its internal audit committee in May. The investigation hindered the preparation of financial reports during the second quarter as well.
DENTSPLY SIRONA is working to complete the investigation as soon as possible. However, the duration or outcome of the investigation remains uncertain.
The company’s board is investigating the involvement of former and current members of senior management in improper incentives to distributors last year to fraudulently boost the company’s results. The investigation has led to the dismissal of its chief executive officer and chief accounting officer. We also note that XRAY’s chief financial officer had joined COVID-19 vaccine-maker, Moderna (MRNA - Free Report) in the same position. However, he resigned from Moderna a day before the investigation was disclosed by XRAY through an SEC filing.
The delay due to the ongoing investigation may result in DENTSPLY SIRONA losing its coveted position. However, we expect the company’s board to focus on keeping the listing status at Nasdaq.
Price Performance
Shares of this Zacks Rank #4 (Sell) company have gained 34.1% on a year-to-date basis against the industry’s decline of 6.53%.
ShockWave Medical’s earnings per share estimates have improved from $1.84 to $2.57 for 2022 and from $2.82 to $3.42 for 2023 in the past 60 days. SWAV has gained 62.5% so far this year.
ShockWave Medical delivered an earnings surprise of 180.14%, on average, in the last four quarters.
Alkermes’ earnings per share estimates have improved from a loss of 17 cents to earnings of 20 cents for 2022 and from 31 cents to 50 cents for 2023 in the past 60 days. ALKS has gained 13.8% so far this year.
Alkermes delivered an earnings surprise of 325.48%, on average, in the last four quarters.
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DENTSPLY SIRONA (XRAY) Falls After Nasdaq's Delinquency Notice
Shares of DENTSPLY SIRONA (XRAY - Free Report) fell 2.2% on Aug 16, following the receipt of a written notice from The NASDAQ Stock Market (“Nasdaq”) for filing delinquency from the exchange. The notice was sent by the exchange for the company’s non-compliance with the Nasdaq Listing Rules due to the non-filing of quarterly results with the Security Exchange Commission (SEC) for the first and the second quarters of 2022. The timely filing of all periodic reports is one of the requirements for Nasdaq-listed companies.
The company had received a similar notice from Nasdaq in May following the non-filing of the first-quarter results on time.
However, none of these two notices from Nasdaq have any immediate effect.
DENTSPLY SIRONA had submitted a plan to regain compliance, following the first notice, in which it targeted to complete the filing of the quarterly reports by Aug 14, 2022. However, in its second-quarter preliminary results release, the company stated that it had informed the Nasdaq staff that it does not expect to meet the targeted date for filing. It is looking to file an updated plan, which may allow the company to remain listed on the exchange till Nov 7, if accepted.
Audit Committee Investigation Delays Filing
We note that DENTSPLY SIRONA has been unable to file its quarterly reports SEC in time due to an investigation of certain financial reporting matters initiated by its internal audit committee in May. The investigation hindered the preparation of financial reports during the second quarter as well.
DENTSPLY SIRONA is working to complete the investigation as soon as possible. However, the duration or outcome of the investigation remains uncertain.
DENTSPLY SIRONA Inc. Price
DENTSPLY SIRONA Inc. price | DENTSPLY SIRONA Inc. Quote
The company’s board is investigating the involvement of former and current members of senior management in improper incentives to distributors last year to fraudulently boost the company’s results. The investigation has led to the dismissal of its chief executive officer and chief accounting officer. We also note that XRAY’s chief financial officer had joined COVID-19 vaccine-maker, Moderna (MRNA - Free Report) in the same position. However, he resigned from Moderna a day before the investigation was disclosed by XRAY through an SEC filing.
The delay due to the ongoing investigation may result in DENTSPLY SIRONA losing its coveted position. However, we expect the company’s board to focus on keeping the listing status at Nasdaq.
Price Performance
Shares of this Zacks Rank #4 (Sell) company have gained 34.1% on a year-to-date basis against the industry’s decline of 6.53%.
Image Source: Zacks Investment Research
Stocks to Consider
A couple of better-ranked stocks from the medical industry include ShockWave Medical (SWAV - Free Report) and Alkermes (ALKS - Free Report) . While ShockWave Medical sports a Zacks Rank #1 (Strong Buy), Alkermes carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ShockWave Medical’s earnings per share estimates have improved from $1.84 to $2.57 for 2022 and from $2.82 to $3.42 for 2023 in the past 60 days. SWAV has gained 62.5% so far this year.
ShockWave Medical delivered an earnings surprise of 180.14%, on average, in the last four quarters.
Alkermes’ earnings per share estimates have improved from a loss of 17 cents to earnings of 20 cents for 2022 and from 31 cents to 50 cents for 2023 in the past 60 days. ALKS has gained 13.8% so far this year.
Alkermes delivered an earnings surprise of 325.48%, on average, in the last four quarters.