We expect dental and healthcare products company -
DENTSPLY International Inc.
) 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
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
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.
), Earnings ESP of +33.33% and Zacks Rank #1 (Strong Buy)
Steris Corp. (
Earnings ESP of +6.45% and Zacks Rank #2 (Buy)
The Cooper Companies Inc.
), Earnings ESP of +1.68% and Zacks Rank #2 (Buy).
COOPER COS (COO): Free Stock Analysis Report
MEDICAL ACTION (MDCI): Free Stock Analysis
STERIS CORP (STE): Free Stock Analysis Report
DENTSPLY INTL (XRAY): Free Stock Analysis
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