DENTSPLY International Inc. (XRAY): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

By Zacks Investment Research,

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DENTSPLY reported mixed third-quarter 2014 results. Although earnings per share (EPS) beat the Zacks Consensus Estimate, revenues missed the same. Management narrowed its 2014 EPS outlook. The company continues to focus on improving cost structure that will help it to achieve 20% operating margin by 2017. We believe that DENTSPLY's innovative product pipeline, stabilizing U.S. and Western European markets, strong balance sheet and robust cash flow generation ability are key growth catalysts. The company expects to continue its share buyback program and pursue strategic acquisitions based on improving liquidity and cash flow position. However, strengthening of U.S. dollar against Euro, weakness in Japan, Brazil and CIS region, intensifying competition and higher capital expenditure on product development are some of the headwinds in the near term. Given the mixed signals, we maintain our Neutral recommendation and set a price target of $56.00.


Headquartered in York, PA, DENTSPLY International Inc. (XRAY) is a global leader in the design, development, manufacture and marketing of dental consumables, dental laboratory products, dental specialty products and consumable medical device products. The company has global operations with sales in more than 120 countries.

DENTSPLY reported net sales of $2.95 billion in 2013. By product category, Chairside Consumables (Restorative & Preventive products), Specialties (Implants, Endodontics, Orthodontics), Prosthetics (Artificial Teeth, Denture Bases, Crown and Bridge, CAD/CAM) and Medical (Urology, Surgery, Instruments) contributed 28%, 48%, 11% and 13% of sales in 2013, respectively.

In the nine months ended Sep 30, 2014, the company reported net sales of $708.2 million, which was flat on a year-over-year basis. Professional dental products represented approximately 88% of sales in the nine-month period.

The company reports operations primarily under three segments Dental Consumables and Certain International businesses (25.8% of net sales in the nine months ending Sep 30), Dental Specialty and Laboratory and Certain Global Distribution businesses (54.6%), and Healthcare and Emerging Markets businesses (19.7%).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: EPS , XRAY

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