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DENTSPLY (XRAY) Beats on Earnings in Q4, Misses Revenues

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DENTSPLY SIRONA Inc. (XRAY - Free Report) reported adjusted earnings per share (EPS) of 67 cents in the fourth quarter of 2016, surpassing the Zacks Consensus Estimate by 2 cents. Earnings were also higher than 65 cents recorded in the year-ago quarter.

Stock Performance

The price performance of the stock has been unfavorable over the last three months. DENTSPLY SIRONA registered a paltry return of 0.47%, underperforming the Zacks classified Medical - Dental Supplies sub-industry’s gain of almost 6.64%.


Quarter Details

Net sales increased to $996.5 million from $671.1 million in the year-ago period. However, the figure came below the Zacks Consensus Estimate of $1,019.0 million. Sales of the combined businesses increased 4.3% at constant currency (cc) exchange rates. In the reported quarter sales were affected by channel inventory reduction related to a change in distribution strategy in North America.

In the quarter, U.S. sales surged 48.2% to $329.0 million, while net sales in Europe increased 37.7% to $402.4 million. Sales of the combined business declined 5.1% at cc in the U.S., while European sales rose 7.9%.

Net sales in Rest of World increased 69.0% to $265.1 million. Sales in Rest of World of the combined businesses improved 12.5% at cc.

Segment Details

The business is organized into two reporting segments: Dental & Healthcare Consumables and Technologies.
Dental & Healthcare Consumables comprises preventive, restorative, instruments, endodontic and laboratory dental products, as well as consumable medical device products. Sales increased 5.6% to $513.3 million. At cc, sales of the combined entity rose 3.4% year over year in the quarter.

Technologies consist of dental implants, CAD/CAM systems, imaging systems, treatment centers and orthodontic products. Net sales increased 160.9% to $483.2 million. At cc, sales of the combined business climbed 5.2% in the quarter.

Financial Update

Total cash and cash equivalents of the company increased to $383.9 million as of Dec 31, 2016 from $284.6 million as of Dec 31, 2015.

Cash generated from operations in 2016 was $563.4 million compared with $497.4 million in 2015.

As of Dec 31, 2016, DaVita’s long-term debt was $1.5 billion, up from $1.1 billion at year-end 2015.


For full-year 2017, the company anticipates adjusted EPS in the range of $2.80 to $2.90.

DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise


DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise | DENTSPLY SIRONA Inc. Quote

Zacks Rank & Key Picks

Currently, DENTSPLY carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the broader medical sector include Glaukos Corporation (GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corporation . Notably, Glaukos sports a Zacks Rank #1 (Strong Buy) while Avinger and Fluidigm carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1  Rank stocks here.

Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock registered an impressive one-year return of 180.8%.

Avinger projects sales growth of 30.7% for the current year. Additionally, the company posted a positive earnings surprise of 27% last quarter.

Fluidigm Corporation has a long-term expected earnings growth of 25%. The stock has added 10.3% over the last one-year.

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