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DENTSPLY SIRONA (XRAY) Q3 Earnings & Revenues Beat Estimates

DENTSPLY SIRONA's (XRAY) third-quarter results benefit from strong segmental performance.

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This story originally appeared on Zacks

DENTSPLY SIRONA Inc. XRAY reported third-quarter 2021 adjusted earnings per share (EPS) of 68 cents, beating the Zacks Consensus Estimate of 65 cents by 4.6%. The bottom line improved 1.5% on a year-over-year basis.

GAAP EPS in the quarter was 47 cents, compared with the year-ago quarter’s figure of 25 cents.

- Zacks

Revenues

For the quarter, revenues amounted to $1.07 billion, surpassing the Zacks Consensus Estimate by 4%. The top line increased 19.4% year over year. Sales grew 21.1% on an organic basis.

Business Details

Consumables

Consumable revenues grew 12.4% year over year and 15.9% on an organic basis in the third quarter to $440 million. Per management, the upside was driven by increase in sales of all product categories in the quarter.

DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise

DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise

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

Technologies & Equipment

Technologies & Equipment revenues were up 24.8% year over year to $629 million in the reported quarter. On an organic basis, net sales rose 25.3%. Sales growth across all product categories led to the improvement.

Revenues by Geography

In the United States, revenues increased 25.3% to $399 million. Rest of World revenues climbed 20.1% year over year to $271 million. European revenues grew 13.6% year over year to $399 million.

Margin Analysis

Gross profit in the reported quarter amounted to $591 million, up 33.7% on a year-over-year basis. Gross margin was 55.3%, expanding 590 basis points (bps).

Selling, general and administrative expenses were $394 million, up 25.1% from the year-ago quarter. Research and development expenses amounted to $35 million, up 29.6% from the prior-year quarter.

Operating profit was $159 million, up 93.9% from the year-ago quarter. Operating margin was 14.9%, expanding 570 bps on a year-over-year basis.

Financial Condition

DENTSPLY SIRONA exited the third quarter of 2021 with cash and cash equivalents of $281 million, down from $332 million in the second quarter of 2021.

Cumulative net cash provided by operating activities at the end of the third quarter was $435 million compared with $372 million in the year-ago period.

2021 Guidance

On the basis of the third-quarter 2021 performance and the sustained gradual recovery in the global dental market, DENTSPLY SIRONA has updated its 2021 earnings outlook.

The company projects 2021 revenues within $4.25-$4.30 billion (compared to the prior guided range of $4.10-$4.30 billion), up around 27-30% on a reported basis and 22-25% on an organic basis. The Zacks Consensus Estimate for the same is pegged at $4.28 billion.

The company expects an adjusted EPS of $2.87-$2.92, (up from the previously guided range of $2.75-$2.90). The Zacks Consensus Estimate for the same stands at $2.88.

Our Take

DENTSPLY SIRONA ended the third quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company saw revenue growth at both Consumables, and Technologies & Equipment segments in the quarter. It witnessed higher revenues in both domestic and international markets. Expansion in both gross and operating margins is another plus.

Per management, the third-quarter performance highlights the sustained recovery in the dental market and solid demand for the company’s recent product launches.

However, rise in selling, general and administrative expenses remains a concern.

Zacks Rank and Key Picks

Currently, DENTSPLY SIRONA has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. TMO, West Pharmaceutical Services, Inc. WST, and AngioDynamics, Inc. ANGO. While both Thermo Fisher and AngioDynamics sport a Zacks Rank of 1 (Strong Buy), West Pharmaceutical carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the consensus mark by 12%.

West Pharmaceutical reported third-quarter 2021 adjusted EPS of $2.06, which surpassed the Zacks Consensus Estimate by 13.2%. Third-quarter revenues of $706.5 million outpaced the Zacks Consensus Estimate by 3.2%.

AngioDynamics reported first-quarter fiscal 2022 loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%.



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