What's In Store For DENTSPLY SIRONA (XRAY) In Q3 Earnings?

DENTSPLY SIRONA Inc. (NASDAQ:XRAY) is scheduled to release third-quarter 2019 results on Nov 7, before the opening bell.

In the last reported quarter, the company delivered a positive earnings surprise of 6.5%. Further, it has an average four-quarter positive surprise of 6.8%.

Let’s take a look at how things are shaping up prior to this announcement.

What do the Q3 Estimates Say?

For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $944.9 million, indicating an improvement of 1.8% from the year-ago quarter. The consensus estimate for the bottom line is pegged at 50 cents, suggesting growth of 31.6% from the year-ago reported figure.

Factors to Influence Q3

DENTSPLY SIRONA’s growth strategy focuses on product innovation, and research and development (R&D) focus, which is likely to have driven sales in the third quarter. This apart, solid track record of innovation and a dedicated, passionate workforce is likely to have contributed to the third-quarter performance.

Moreover, Technology & Equipment segment’s third-quarter performance is likely to reflect better-than-expected performance across all its products categories, equipment and instruments, digital, implants and health care. Additionally, the impact of prior-year dealer inventory stocking is likely to have contributed to the third-quarter performance.

The company’s CAD/CAM is a dental imaging platform and a major foundation in global dental markets. Product launches and innovation in this area are likely to have fueled CAD/CAM sales in the to-be-reported quarter and consequently the top line in the United States.

The company is likely to have witnessed growth in emerging markets in the to-be-reported quarter fueled by better-than-expected performance across Consumables and Technology & Equipment business lines.

Execution of cost saving opportunities is likely to impact the bottom line in 2019, a trend that that is likely to get reflected in the to-be-reported quarter.

For 2019, the company estimates revenues to range between $3.95 billion and $4.05 billion, representing growth of 4-5% over 2018. However, foreign exchange headwinds are expected to impact the company’s top line by $110 million in 2019. Moreover, portfolio streamlining initiatives that have already been implemented are anticipated to reduce 2019 revenues by approximately $70 million.

DENTSPLY SIRONA’s significant international presence poses a threat to the company’s to-be-reported quarter. Foreign exchange is estimated to negatively impact 2019 revenues of 2.5% or $100 million, given the current rates for the remainder of the year, a trend that is likely to have continued in the third quarter.

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.

Earnings ESP: DENTSPLY SIRONA has an Earnings ESP of 0.00%. 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 #2.

Stocks Worth a Look

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

AmerisourceBergen Corporation (NYSE:ABC) has an Earnings ESP of +0.55% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Neovasc Inc. (NASDAQ:NVCN) has an Earnings ESP of +16.87% and a Zacks Rank #3.

ShockWave Medical, Inc. (NASDAQ:SWAV) has an Earnings ESP of +3.55% and a Zacks Rank #3.

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