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International Markets and Dentsply (XRAY): A Deep Dive for Investors

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Have you assessed how the international operations of Dentsply International (XRAY - Free Report) performed in the quarter ended June 2025? For this dental products manufacturer, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

In our recent assessment of XRAY's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

The company's total revenue for the quarter amounted to $936 million, showing decrease of 4.9%. We will now explore the breakdown of XRAY's overseas revenue to assess the impact of its international operations.

Decoding XRAY's International Revenue Trends

Europe accounted for 43.2% of the company's total revenue during the quarter, translating to $404 million. Revenues from this region represented a surprise of +3.62%, with Wall Street analysts collectively expecting $389.9 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $362 million (41.2%) and $387 million (39.3%) to the total revenue, respectively.

Rest of World generated $239 million in revenues for the company in the last quarter, constituting 25.5% of the total. This represented a surprise of +7.37% compared to the $222.59 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of World accounted for $215 million (24.5%), and in the year-ago quarter, it contributed $237 million (24.1%) to the total revenue.

Revenue Projections for Overseas Markets

Wall Street analysts expect Dentsply to report a total revenue of $905.49 million in the current fiscal quarter, which suggests a decline of 4.8% from the prior-year quarter. Revenue shares from Europe and Rest of World are predicted to be 39.1%, and 23.8%, corresponding to amounts of $353.86 million, and $215.07 million, respectively.

For the full year, a total revenue of $3.65 billion is expected for the company, reflecting a decline of 3.8% from the year before. The revenues from Europe and Rest of World are expected to make up 41.4%, and 24.2% of this total, corresponding to $1.51 billion, and $884.44 million, respectively.

Concluding Remarks

Relying on international markets for revenues, Dentsply faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

Dentsply currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Look at Dentsply International's Recent Stock Price Performance

Over the past month, the stock has seen a decline of 20.1% in its value, whereas the Zacks S&P 500 composite has posted an increase of 2.7%. The Zacks Medical sector, Dentsply's industry group, has descended 3.3% over the identical span. In the past three months, there's been a decline of 22.4% in the company's stock price, against a rise of 13.2% in the S&P 500 index. The broader sector has declined by 1.8% during this interval.


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