DENTSPLY International Inc.
) posted earnings per share of 57 cents in the third quarter of
2013 edging past the Zacks Consensus Estimate by a penny as well
as the year-ago earnings of 51 cents by 11.8%. Net earnings rose
nearly 11.0% to $82.2 million from $74.1 million in the third
quarter of 2012.
Net revenues inched up 1.2% to $704.0 million but lagged the
Zacks Consensus Estimate of $716 million. Excluding precious
metals content, net revenues rose 3.4% to $669.4 million.
In constant currency, net sales grew 2.7%, excluding precious
metals content, indicating internal growth in the U.S. and Rest
of World geographic regions and continued modest internal growth
Adjusted operating income escalated 7.2% to $119.7 million from
$111.7 million in the year-ago quarter. Adjusted operating margin
expanded 60 bps to 17.9% in the quarter from 17.3% a year ago.
DENTSPLY ended the third quarter with cash and cash equivalents
of $50.7 million compared with $80.1 million at the end of 2012.
Long-term debt decreased to $1,164.8 million as of Sep 30, 2013
from $1,222.0 million at the end of 2012.
Cash flow from operations rose 27.8% to $258.3 million in the
first nine months of 2013, from $202.1 million in the year-ago
period. Capital expenditure for the same period went up 13.3% to
$73.5 million from $64.9 million a year ago.
DENTSPLY reiterated its 2013 adjusted-earnings per share
expectation to the band of $2.33 to $2.38 as market conditions
remained consistent with the expectations earlier this year.
Although the bottom line beat estimates, we remain unimpressed by
DENTSPLY's flat top line and revenue miss in the third quarter.
This is mainly due to ongoing difficult dental market trends in
Europe. However, we note that the company performed well in
the U.S. Moreover, improving margins represent a potential upside
Currently, DENTSPLY has a Zacks Rank #4 (Sell). Medical stocks
that warrant a look are
Cardinal Health, Inc.
Merit Medical Systems, Inc.
). All of them carry a Zacks Rank #1 (Strong Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis
CARDINAL HEALTH (CAH): Free Stock Analysis
MERIT MEDICAL (MMSI): Free Stock Analysis
DENTSPLY INTL (XRAY): Free Stock Analysis
To read this article on Zacks.com click here.