DENTSPLY Likely to Beat 4Q Earnings - Analyst Blog


Shutterstock photo

We expect dental and healthcare products company -  DENTSPLY International Inc. ( XRAY ) to beat expectations when it reports fourth-quarter and full year 2012 results on Feb 20.

Why a Likely Positive Surprise?

Our proven model shows that DENTSPLY is likely to beat earnings because it has the right combination of two key ingredients.

Positive Zacks ESP: Earnings ESP (Read:  Zacks Earnings ESP: A Better Method ), which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is at +1.82%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.

Zacks Rank #3 (Hold): Note that stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings. The sell rated stocks (#4 and #5) should never be considered going into an earnings announcement.

The combination of DENTSPLY's Zacks Rank #3 (Hold) and ESP of +1.82% makes us very confident in looking for a positive earnings beat on Feb 20.

What is Driving the Better Than Expected Earnings?

DENTSPLY is poised to grow its share in the dental implant market, driven by a strong product base as well as significant investment in 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 product range.

Based on the prevailing macroeconomic scenario and the company's performance, DENTSPLY expects to generate adjusted earnings per share in the band of $2.19 and $2.24 for 2012. The current Zacks Consensus Estimate for earnings is pegged at $2.21per share for 2012.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows that these have the right combination of ingredients to post an earnings beat this quarter:

Medical Action Industries Inc. ( MDCI ), Earnings ESP of +33.33% and Zacks Rank #1 (Strong Buy)

Steris Corp. ( STE">STE ) , Earnings ESP of +6.45% and Zacks Rank #2 (Buy)

The Cooper Companies Inc. ( COO ), Earnings ESP of +1.68% and Zacks Rank #2 (Buy).

COOPER COS (COO): Free Stock Analysis Report

MEDICAL ACTION (MDCI): Free Stock Analysis Report

STERIS CORP (STE): Free Stock Analysis Report

DENTSPLY INTL (XRAY): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

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 , Business , Earnings , Stocks
Referenced Stocks: COO , MDCI , STE , XRAY

More from


Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by