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DENTSPLY SIRONA Inc. (XRAY - Free Report) reported fourth-quarter 2022 adjusted earnings per share (EPS) of 46 cents, beating the Zacks Consensus Estimate of 32 cents by 43.8%. The bottom line, however, declined 44.4% on a year-over-year basis.
On a GAAP basis, the company incurred a loss of 7 cents per share against an EPS of 54 cents in the year-ago quarter.
Revenues
Revenues in the fourth quarter of 2022 totaled $983 million, beating the Zacks Consensus Estimate by 5.2%. The top line, however, decreased 10.9% year over year. Sales were down 2.6% on an organic basis.
Business Details
Consumables
Revenues of the Consumables segment came in at $381 million in the fourth quarter, down 9.9% year over year and 3.4% on an organic basis. Per management, the decline was led by COVID lockdowns in China, partially offset by pricing and contributions from new products.
Technologies & Equipment
Technologies & Equipment’s revenues were $602 million in the reported quarter, down 11.6% year over year. On an organic basis, net sales declined 2.2%. Higher demand for clear aligners and imaging equipment drove organic revenues but were more than offset by softer implants volume, particularly in China.
DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise
In the United States, revenues decreased 3.9% year over year to $369 million. Rest of World revenues fell 15.7% year over year to $238 million. European revenues declined 14.1% year over year to $376 million. Sales were down organically by 3.2% and 3% in the European and Rest of the World markets, respectively. Organic sales declined 1.7% in the U.S. market.
Margin Analysis
Gross profit in the reported quarter totaled $517 million, down 14.4% on a year-over-year basis. The gross margin was 52.6%, contracting 210 basis points.
Selling, general and administrative expenses were $402 million, up 6.6% from the year-ago quarter. Research and development expenses amounted to $43 million, down 12.2% from the prior-year quarter.
Operating income was $65 million compared with $172 million in the year-ago quarter.
Full-Year Result
DENTSPLY SIRONA reported full-year 2022 revenues of $3.92 billion, down 7.3% year over year. Organically, sales were down 0.5%. The company reported adjusted EPS of $2.09, down 25.9% from the year-ago period.
Financial Condition
DENTSPLY SIRONA exited the fourth quarter of 2022 with cash and cash equivalents of $365 million, down from $418 million at the end of third quarter.
Cumulative net cash provided by operating activities at the end of the fourth quarter was $517 million compared with $657 million in the year-ago period.
2023 Guidance Issued
DENTSPLY SIRONA issued its guidance for revenues and EPS in 2023. The company projects 2023 revenues in the $3.85-$3.95 billion range. The Zacks Consensus Estimate for the same is pegged at $3.80 billion. The outlook includes an organic sales decline of 1% to an improvement of 2%.
The company expects an adjusted EPS of $1.80-$2.00. The Zacks Consensus Estimate for the same stands at $1.86.
For the first quarter of 2023, DENTSPLY SIRONA expects organic sales growth of approximately 1%.
Our Take
Although DENTSPLY SIRONA’s top line reflected soft demand in China due to lockdowns, it beat market expectations. Moreover, adjusted earnings also beat estimates amid inflationary pressure. Its sales and earnings outlook for 2023 were also higher than expected.
The company saw continued strong demand for Imaging equipment during the quarter. However, the ongoing macro headwinds impacted fourth-quarter results adversely, which is likely to continue in 2023. Weakness in the U.S. markets is also discouraging.
Zacks Rank and Stocks to Consider
Currently, DENTSPLY SIRONA has a Zacks Rank #3 (Hold).
Some other stocks in the broader medical space that have announced quarterly results are AmerisourceBergen , McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
AmerisourceBergen, carrying a Zacks Rank #2 (Buy), reported first-quarter fiscal 2022 adjusted EPS of $2.71, beating the Zacks Consensus Estimate by 3.4%. Revenues of $62.85 billion outpaced the consensus mark by 0.9%. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AmerisourceBergen has a long-term estimated growth rate of 8.7%. ABC’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.47%.
McKesson, carrying a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average surprise being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.
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DENTSPLY SIRONA (XRAY) Q4 Earnings & Revenues Beat Estimates
DENTSPLY SIRONA Inc. (XRAY - Free Report) reported fourth-quarter 2022 adjusted earnings per share (EPS) of 46 cents, beating the Zacks Consensus Estimate of 32 cents by 43.8%. The bottom line, however, declined 44.4% on a year-over-year basis.
On a GAAP basis, the company incurred a loss of 7 cents per share against an EPS of 54 cents in the year-ago quarter.
Revenues
Revenues in the fourth quarter of 2022 totaled $983 million, beating the Zacks Consensus Estimate by 5.2%. The top line, however, decreased 10.9% year over year. Sales were down 2.6% on an organic basis.
Business Details
Consumables
Revenues of the Consumables segment came in at $381 million in the fourth quarter, down 9.9% year over year and 3.4% on an organic basis. Per management, the decline was led by COVID lockdowns in China, partially offset by pricing and contributions from new products.
Technologies & Equipment
Technologies & Equipment’s revenues were $602 million in the reported quarter, down 11.6% year over year. On an organic basis, net sales declined 2.2%. Higher demand for clear aligners and imaging equipment drove organic revenues but were more than offset by softer implants volume, particularly in China.
DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise
DENTSPLY SIRONA Inc. price-consensus-eps-surprise-chart | DENTSPLY SIRONA Inc. Quote
Revenues by Geography
In the United States, revenues decreased 3.9% year over year to $369 million. Rest of World revenues fell 15.7% year over year to $238 million. European revenues declined 14.1% year over year to $376 million. Sales were down organically by 3.2% and 3% in the European and Rest of the World markets, respectively. Organic sales declined 1.7% in the U.S. market.
Margin Analysis
Gross profit in the reported quarter totaled $517 million, down 14.4% on a year-over-year basis. The gross margin was 52.6%, contracting 210 basis points.
Selling, general and administrative expenses were $402 million, up 6.6% from the year-ago quarter. Research and development expenses amounted to $43 million, down 12.2% from the prior-year quarter.
Operating income was $65 million compared with $172 million in the year-ago quarter.
Full-Year Result
DENTSPLY SIRONA reported full-year 2022 revenues of $3.92 billion, down 7.3% year over year. Organically, sales were down 0.5%. The company reported adjusted EPS of $2.09, down 25.9% from the year-ago period.
Financial Condition
DENTSPLY SIRONA exited the fourth quarter of 2022 with cash and cash equivalents of $365 million, down from $418 million at the end of third quarter.
Cumulative net cash provided by operating activities at the end of the fourth quarter was $517 million compared with $657 million in the year-ago period.
2023 Guidance Issued
DENTSPLY SIRONA issued its guidance for revenues and EPS in 2023. The company projects 2023 revenues in the $3.85-$3.95 billion range. The Zacks Consensus Estimate for the same is pegged at $3.80 billion. The outlook includes an organic sales decline of 1% to an improvement of 2%.
The company expects an adjusted EPS of $1.80-$2.00. The Zacks Consensus Estimate for the same stands at $1.86.
For the first quarter of 2023, DENTSPLY SIRONA expects organic sales growth of approximately 1%.
Our Take
Although DENTSPLY SIRONA’s top line reflected soft demand in China due to lockdowns, it beat market expectations. Moreover, adjusted earnings also beat estimates amid inflationary pressure. Its sales and earnings outlook for 2023 were also higher than expected.
The company saw continued strong demand for Imaging equipment during the quarter. However, the ongoing macro headwinds impacted fourth-quarter results adversely, which is likely to continue in 2023. Weakness in the U.S. markets is also discouraging.
Zacks Rank and Stocks to Consider
Currently, DENTSPLY SIRONA has a Zacks Rank #3 (Hold).
Some other stocks in the broader medical space that have announced quarterly results are AmerisourceBergen , McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
AmerisourceBergen, carrying a Zacks Rank #2 (Buy), reported first-quarter fiscal 2022 adjusted EPS of $2.71, beating the Zacks Consensus Estimate by 3.4%. Revenues of $62.85 billion outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AmerisourceBergen has a long-term estimated growth rate of 8.7%. ABC’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.47%.
McKesson, carrying a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average surprise being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.