DENTSPLY SIRONA Inc. (NASDAQ:XRAY) reported adjusted earnings per share (EPS) of 66 cents in the third quarter of 2016, beating the Zacks Consensus Estimate by 3 cents. Earnings were flat on a year-over-year basis.
Notably, DENTSPLY repurchased an additional $100 million of shares and paid $18 million in dividends during the third quarter.
Quarter Details
Net sales increased to $954.2 million from $648.9 million in the year-ago period. However, the figure came below the Zacks Consensus Estimate of $960.0 million. Sales (excluding precious metals) of the combined businesses grew 49.2% at constant currency (cc) exchange rates. Net sales, excluding precious metal content, were positively impacted by approximately 40 basis points due to the weakening of the U.S. dollar over the prior-year period.
Sales (excluding precious metals) of the combined businesses grew 49.2% at constant currency (cc) exchange rates.
In the quarter, U.S. sales surged 33.9% to $334.2 million, while net sales in Europe increased 41.3% to $348.3 million. Sales (excluding precious metals) of the combined business fell 3.1% at cc in the U.S., while European sales rose 1.6%.
Net sales in Rest of World increased 92.6% to $256.7 million. Sales (excluding precious metals) in Rest of World of the combined businesses improved 3.8% at cc.
Segment Details
Post completion of the DENTSPLY-SIRONA merger, the business has been 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 7% to $497.2 million. At cc, sales of the combined entity were flat year over year in the quarter.
Technologies consist of dental implants, CAD/CAM systems, imaging systems, treatment centers and orthodontic products. Net sales increased 168.5% to $442 million. At cc, sales of the combined business climbed 0.9% in the quarter. Internal sales growth of the combined business was 0.2%.
Guidance
For full-year 2016, the company raised the bottom end of its previous EPS guidance range of $2.70 to $2.80 and now anticipates adjusted EPS in the range of $2.75 to $2.80.
Zacks Rank & Key Picks
Currently, DENTSPLY carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader medical space include Cardiovascular Systems Inc. (NASDAQ:CSII) , Exelixis, Inc. (NASDAQ:EXEL) and IDEXX Laboratories, Inc. (NASDAQ:IDXX) . Notably, all the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardiovascular Systems represents a stellar one-year return of 55.1%. Notably, the company has an expected long-term growth rate of 22.5%.
Exelis has a stupendous one-year return of 66.1%. In the last reported quarter, the company registered an impressive earnings surprise of 40.74%.
IDEXX Laboratories represents a promising one-year return of 48.6%. The company has a long-term expected growth rate of almost 14.8%.
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IDEXX LABS INC (IDXX): Free Stock Analysis Report
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DENTSPLY SIRONA (XRAY): Free Stock Analysis Report
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