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DENTSPLY SIRONA (XRAY) to Post Q1 Earnings: What's in Store?

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DENTSPLY SIRONA Inc. (XRAY - Free Report) is expected to release first-quarter 2020 results in the early weeks of May, before the opening bell.

In the last reported quarter, the company delivered a positive earnings surprise of 14%. Further, it has a trailing four-quarter positive earnings surprise of 14.2%, on average.

Q1 Estimates

For the first quarter, the Zacks Consensus Estimate for revenues is $878.6 million, indicating a decline of 7.1% from the year-ago quarter. The consensus mark for the bottom line is pegged at 39 cents, suggesting a decline of 20.4% from the year-ago reported figure.

Factors to Note

DENTSPLY SIRONA’s growth strategy is committed to product innovation, and research and development focus, which is likely to have driven the first-quarter sales. Apart from this, a solid record of innovation and a dedicated workforce are likely to have contributed to the first-quarter performance.

Moreover, Technology & Equipment segment’s results are likely to reflect better-than-expected performance across all its products categories equipment and instruments, digital, implants and health care during the first two months of the quarter to be reported. However, the pandemic has been impacting non-emergency and elective procedures since late February, which in turn might have weighed on the segment’s performance.

DENTSPLY SIRONA Inc. Price and EPS Surprise

 

DENTSPLY SIRONA Inc. Price and EPS Surprise

DENTSPLY SIRONA Inc. price-eps-surprise | DENTSPLY SIRONA Inc. Quote

The company’s CAD/CAM is a dental imaging platform and has a significant presence in global dental markets. Product launches and innovation in this area are likely to have driven CAD/CAM sales in the to-be-reported quarter. This, in turn, is likely to have contributed to the top line in the United States.

However, it is important to note here that with the coronavirus outbreak intensifying around late February, the company’s dental imaging platform is likely to have been affected.

The company may have witnessed growth in emerging markets (except China) in the first two months of the first quarter mainly fueled by strong Primescan sales. Since late February, the coronavirus outbreak intensified and is likely to have dampened the performance in these markets.

During third-quarter 2019, DENTSPLY SIRONA introduced Primescan, CEREC 5.1 software (a performance upgrade for CEREC) and Astra Tech EV implant system. Further, the company launched Primemill – another addition to the CEREC product portfolio in January.

All of these launches are likely to have contributed to the company’s first-quarter performance.

However, DENTSPLY SIRONA’s significant international presence may have weighed on the company’s performance in the to-be-reported quarter. Foreign exchange is estimated to impact 2020 revenues by $30 million.

What Our Quantitative Model Suggests

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.

Earnings ESP: DENTSPLY SIRONA has an Earnings ESP of -2.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: DENTSPLY SIRONA carries a Zacks Rank #4 (Sell).

Stocks Worth a Look

Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.

Luminex Corporation (LMNX - Free Report) has an Earnings ESP of +14.28% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +2.76% and a Zacks Rank of 3.

Aurora Cannabis Inc. (ACB - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank of 3.

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