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Can DENTSPLY Sirona (XRAY) Deliver a Beat in Q2 Earnings?

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York, PA-based DENTSPLY Sirona Inc. (XRAY - Free Report) , a dental solutions company, is expected to report second-quarter 2017 results on Aug 9.

DENTSPLY Sirona’s track record has been quite impressive, with the company beating estimates in three of the trailing four quarters.  Last quarter, it delivered a negative earnings surprise of 3.92%, taking the four-quarter average to a positive 3.12%. Let’s see how things are shaping up prior to this quarter.

Why a Likely Positive Surprise?

Our proven model shows that DENTSPLY is likely to beat on earnings because it has the right combination of the two key components.

Zacks ESP: DENTSPLY currently has an Earnings ESP of +4.55%. This is because the Most Accurate estimate is 69 cents, while the Zacks Consensus Estimate comes is pegged at 66 cents. A favorable Earnings ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: DENTSPLY currently carries a Zacks Rank #3 (Hold). It should be noted that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings. Conversely, stocks with a Zacks Rank #4 or 5 (Sell rated) should never be considered going into an earnings announcement.

The combination of DENTSPLY’s Zacks Rank #3 and a positive ESP make us reasonably confident of an earnings beat.

DENTSPLY SIRONA Inc. Price and EPS Surprise


Factors at Play

DENTSPLY’s dental & healthcare consumables segment holds considerable promise. Notably, this segment provides a broad spectrum of products that include preventive, restorative, instruments, endodontic and laboratory dental products, as well as consumable medical device products.

Furthermore, DENTSPLY’s dental implants, CAD/CAM systems, imaging systems, treatment centers and orthodontic products in the technology segment are likely to drive sales.

We are also upbeat about the gradual recovery in the U.S. market. The emerging markets provide significant opportunities for the company as these areas are vastly untapped with low dental products’ penetration. For 2017, the company anticipates adjusted EPS in the range of $2.80$2.90.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:

Halyard Health, Inc. has an Earnings ESP of +5.26% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Genomic Health Inc. (GHDX - Free Report) has an Earnings ESP of +16.67% and carries a Zacks Rank #3.

Pfizer Inc. (PFE - Free Report) has an Earnings ESP of +1.54% and carries a Zacks Rank #3.

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