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Dentsply cuts annual profit outlook on weak demand

Published 11/02/2023, 08:27 AM
Updated 11/02/2023, 08:32 AM
© Reuters.

(Reuters) - Dentsply Sirona lowered its full-year profit and revenue forecasts on Thursday due to weak demand for its dental equipment and consumable products, sending the company's shares down 3% before the bell.

Demand for clear aligners and non-urgent procedures including orthodontic treatment initially recovered this year after a poor 2022 but since then demand, especially for higher-end restorative procedures and adult clear aligners, has waned due to economic uncertainties in some of its markets.

Pennsylvania-based Dentsply sells clear dental aligners under the brand names SureSmile and Byte.

The company now expects total fiscal 2023 revenue between $3.90 billion and $3.94 billion, compared with its previous forecast of $3.98 billion to $4.02 billion.

Dentsply reported third-quarter net sales of $947 million, compared with analysts' estimates of $975 million, according to LSEG data.

On an adjusted basis, the company earned 49 cents per share, beating estimates of 48 cents.

Dentsply also lowered its adjusted profit outlook for the full year to between $1.80 per share and $1.85 per share, from its previous forecast of $1.92 to $2.02 per share.

"Dentsply is just the latest dental name to take a step backward due to worsening macro conditions, though it seems to be executing on its commercial initiatives despite these headwinds," William Blair analyst Brandon Vazquez said.

Rival Align (NASDAQ:ALGN) Technology cut its annual sales forecast in October after missing third-quarter profit estimates.

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