DENTSPLY (XRAY) Earnings And Revenues Miss Estimates In Q1

DENTSPLY SIRONA Inc. (NASDAQ:XRAY) reported adjusted earnings per share (EPS) of 49 cents in the first quarter of 2017, missing the Zacks Consensus Estimate by 2 cents. Earnings were also lower than 69 cents recorded in the year-ago quarter.

Stock Performance

Year to date, DENTSPLY SIRONA shares have increased roughly 13.39% comparing favorably with the Zacks categorized Medical - Dental Supplies’ sub-industry’s addition of 12.08%. The current level is above the S&P 500’s return of 9.07% in the same time frame.

Quarter Details

Net sales increased to $900.5 million from $772.6 million in the year-ago period. However, the figure came below the Zacks Consensus Estimate of $917 million. Sales of the combined businesses decreased 2.2% at constant currency (cc) exchange rates. In the reported quarter, sales were affected by inventory reduction related to a change in the distribution strategy in North America.

In the quarter, U.S. sales surged 12.1% to $313.5 million, while net sales in Europe increased 19.8% to $372.7 million. Sales of the combined business declined 10% at cc in the U.S., while European sales rose 5.3%.

Net sales in Rest of World increased 17.9% to $214.3 million. Sales in Rest of World of the combined businesses fell 2.4% at cc.

DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise

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

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 4.6% to $511.2 million. At cc, sales of the combined entity rose 2.8% year over year in the quarter.

Technologies consist of dental implants, CAD/CAM systems, imaging systems, treatment centers and orthodontic products. Net sales increased 37.2% to $389.3 million. At cc, sales of the combined business fell 8.1% in the reported quarter.

Financial Update

Total cash and cash equivalents of the company decreased to $363.3 million as of Mar 31, 2017 from $383.9 million as of Dec 31, 2016. Cash generated from operations in the reported period was $82.5 million compared with $0.7 million in the year-ago period. As of Mar 31, 2017, the company’s long-term debt was $1.5 billion flat with year-end 2016.

Guidance

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

Zacks Rank & Key Picks

Currently, DENTSPLY carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical sector include Neovasc Inc. (NASDAQ:NVCN) , Hologic, Inc. (NASDAQ:HOLX) and Sunshine Heart Inc (NASDAQ:SSH) . Neovasc and Hologic sport a Zacks Rank #1 (Strong Buy), while Sunshine Heart holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 32.8%.

Sunshine Heart delivered a positive earnings surprise of 58.24% last quarter. The stock has an impressive EPS growth rate (last 3–5 years of actual earnings) of 22%.

Neovasc has seen a stellar gain of 14% over the last three months. The company projects sales growth of 102.88% for the current year.

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