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Envista Stock Climbs on Q3 Earnings and Revenue Beat, Margins Crash
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Envista Holdings Corporation (NVST - Free Report) reported adjusted earnings per share (EPS) of 12 cents in the third quarter of 2024, down 72% year over year. The bottom line surpassed the Zacks Consensus Estimate by 33.3%.
The adjustments include non-cash charges related to the amortization of acquisition-related and other intangible assets, restructuring costs and asset impairments, among others.
The company’s GAAP loss was 5 cents compared with the year-ago quarter’s earnings of 13 cents per share.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Following the announcement, shares of NVST climbed 2.3% yesterday, closing the session at $19.23.
NVST’s Q3 Revenues
Revenues totaled $601 million in the reported quarter, down 4.8% year over year. The metric topped the Zacks Consensus Estimate by 1.5%.
Segmental Details of Q3 Revenues
In the third quarter, Specialty Products & Technologies totaled $381.7 million, down 4.5% year over year.
Revenues from the Equipment & Consumables segment dropped 5.4% year over year to $219.3 million in the quarter under review.
Envista Holdings Corporation Price, Consensus and EPS Surprise
The gross profit in the reported quarter fell 12.7% year over year to $317.3 million. The gross margin contracted 475 basis points (bps) to 52.8%, reflecting a 4.4% decline in sales and around 8% rise in cost of sales.
Selling, general and administrative expenses were up 5.1% year over year to $270.9 million. Research and development expenses fell 14.4% year over year to $25.5 million.
The operating profit of $20.9 million plummeted 75% year over year. The operating margin contracted 972 bps to 0.8%.
NVST’s Financial Update
Envista ended the third quarter of 2024 with cash and cash equivalents of $991.3 million compared with $1.04 billion at the end of the second quarter of 2024. Long-term debt in the third quarter was $1.31 billion compared with $1.39 billion at the second-quarter end.
Year to date, net cash provided by operating activities was $204.1 million compared with $173.7 million a year ago.
Envista Reiterates 2024 Guidance
For 2024, the company continues to expect negative core sales growth between 1% and 4 % and adjusted EBITDA margins in the range of 10%-12%.
The company expects to return to growth in the fourth quarter.
The current Zacks Consensus Estimate for revenues is pegged at $2.50 billion for the full year, suggesting a 2.7% decline from the year-ago reported figure.
Our Take on NVST
Envista closed the third quarter of 2024 with earnings and revenues beating the respective estimates. The company gained a share in orthodontics and diagnostics and held a share in consumables. In the quarter, it introduced many new offerings, including a new CBCT platform, enhanced software for the DEXIS intraoral scanner and additional surgical functionality in the DTX treatment planning platform. The company’s growth in implants was slower than the market, although the narrowed gap provided early evidence that its growth investments have a positive impact.
However, both segments posted a sales decline, impacted by two significant dynamics outside of the normal business drivers — a larger impact from the change in Spark revenue deferral and a draw-down of the channel inventory. The contraction of both margins in the quarter is also discouraging.
Zacks Rank and Key Picks
Envista currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Quest Diagnostics (DGX - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Quest Diagnostics reported third-quarter 2024 adjusted earnings of $2.30, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion beat the consensus mark by 3.4%. DGX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DGX’s 2024 earnings are expected to surge 2.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.
Intuitive Surgical, carrying a Zacks Rank #2, posted a third-quarter 2024 EPS of $1.84, topping the Zacks Consensus Estimate by 11.5%. Revenues of $2.04 billion surpassed the Zacks Consensus Estimate by 1.2%.
ISRG has an estimated 2024 earnings growth rate of 20.1% compared with the industry’s 13.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.9%.
Boston Scientific Corporation, carrying a Zacks Rank #2, reported third-quarter 2024 adjusted earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion topped the Zacks Consensus Estimate by 4.5%.
BSX has an estimated 2024 earnings growth rate of 17.6% compared with the industry’s 11.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.2%.
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Envista Stock Climbs on Q3 Earnings and Revenue Beat, Margins Crash
Envista Holdings Corporation (NVST - Free Report) reported adjusted earnings per share (EPS) of 12 cents in the third quarter of 2024, down 72% year over year. The bottom line surpassed the Zacks Consensus Estimate by 33.3%.
The adjustments include non-cash charges related to the amortization of acquisition-related and other intangible assets, restructuring costs and asset impairments, among others.
The company’s GAAP loss was 5 cents compared with the year-ago quarter’s earnings of 13 cents per share.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Following the announcement, shares of NVST climbed 2.3% yesterday, closing the session at $19.23.
NVST’s Q3 Revenues
Revenues totaled $601 million in the reported quarter, down 4.8% year over year. The metric topped the Zacks Consensus Estimate by 1.5%.
Segmental Details of Q3 Revenues
In the third quarter, Specialty Products & Technologies totaled $381.7 million, down 4.5% year over year.
Revenues from the Equipment & Consumables segment dropped 5.4% year over year to $219.3 million in the quarter under review.
Envista Holdings Corporation Price, Consensus and EPS Surprise
Envista Holdings Corporation price-consensus-eps-surprise-chart | Envista Holdings Corporation Quote
NVST’s Operational Update
The gross profit in the reported quarter fell 12.7% year over year to $317.3 million. The gross margin contracted 475 basis points (bps) to 52.8%, reflecting a 4.4% decline in sales and around 8% rise in cost of sales.
Selling, general and administrative expenses were up 5.1% year over year to $270.9 million. Research and development expenses fell 14.4% year over year to $25.5 million.
The operating profit of $20.9 million plummeted 75% year over year. The operating margin contracted 972 bps to 0.8%.
NVST’s Financial Update
Envista ended the third quarter of 2024 with cash and cash equivalents of $991.3 million compared with $1.04 billion at the end of the second quarter of 2024. Long-term debt in the third quarter was $1.31 billion compared with $1.39 billion at the second-quarter end.
Year to date, net cash provided by operating activities was $204.1 million compared with $173.7 million a year ago.
Envista Reiterates 2024 Guidance
For 2024, the company continues to expect negative core sales growth between 1% and 4 % and adjusted EBITDA margins in the range of 10%-12%.
The company expects to return to growth in the fourth quarter.
The current Zacks Consensus Estimate for revenues is pegged at $2.50 billion for the full year, suggesting a 2.7% decline from the year-ago reported figure.
Our Take on NVST
Envista closed the third quarter of 2024 with earnings and revenues beating the respective estimates. The company gained a share in orthodontics and diagnostics and held a share in consumables. In the quarter, it introduced many new offerings, including a new CBCT platform, enhanced software for the DEXIS intraoral scanner and additional surgical functionality in the DTX treatment planning platform. The company’s growth in implants was slower than the market, although the narrowed gap provided early evidence that its growth investments have a positive impact.
However, both segments posted a sales decline, impacted by two significant dynamics outside of the normal business drivers — a larger impact from the change in Spark revenue deferral and a draw-down of the channel inventory. The contraction of both margins in the quarter is also discouraging.
Zacks Rank and Key Picks
Envista currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Quest Diagnostics (DGX - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Quest Diagnostics reported third-quarter 2024 adjusted earnings of $2.30, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion beat the consensus mark by 3.4%. DGX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DGX’s 2024 earnings are expected to surge 2.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.
Intuitive Surgical, carrying a Zacks Rank #2, posted a third-quarter 2024 EPS of $1.84, topping the Zacks Consensus Estimate by 11.5%. Revenues of $2.04 billion surpassed the Zacks Consensus Estimate by 1.2%.
ISRG has an estimated 2024 earnings growth rate of 20.1% compared with the industry’s 13.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.9%.
Boston Scientific Corporation, carrying a Zacks Rank #2, reported third-quarter 2024 adjusted earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion topped the Zacks Consensus Estimate by 4.5%.
BSX has an estimated 2024 earnings growth rate of 17.6% compared with the industry’s 11.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.2%.