Dental and healthcare products company
DENTSPLY International Inc.
) reported its second quarter 2012 adjusted earnings of 62 cents
per share, beating the Zacks Consensus Estimate of 56 cents per
Reported profit rose 8.8% year over year to $80.8 million (or 56
cents a share) in the quarter.
Revenues increased 25.2% year over year to $763.0 million,
surpassing the Zacks Consensus Estimate of $747 million. Excluding
precious metal content, net sales soared 23.8% (up 30.0% in
constant currency) to $698.5 million. Growth was backed by
acquisitions and strong internal sales in the U.S. as well as in
the overseas market.
Gross margin in the reported quarter increased to 53.4% from
51.7% a year ago. Selling, general and administrative expenses (as
a percentage of sales) were higher at 38.8% versus the 34.6% of the
prior-year quarter. Operating margin declined to 14.3% from 15.9% a
DENTSPLY ended the second quarter with cash and cash equivalents
of $53.2 million, a decline of 92.1% year over year. Long-term debt
more than doubled from the year-ago period to $1,482.8 million.
Based on the trading range of the euro, the company expects to
generate adjusted earnings per share in the band of $2.18 and $2.24
for 2012 compared with the earlier band of $2.22 to $2.30.
DENTSPLY is poised to grow its share in the dental implant
market, driven by a strong product base and significant investment
on product/technology innovation and sales/marketing
infrastructure. The acquisition of Astra Tech has reinforced the
company's leadership in the global dental market and broadened its
The company's diverse product range, significant international
presence, new product introductions and acquisition initiatives are
expected to boost operating metrics moving forward. However,
DENTSPLY faces significant competition from
Sirona Dental Systems
We currently have a Neutral recommendation on DENTSPLY. The
stock currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating.
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