Dental and healthcare products company
DENTSPLY International Inc.
), third-quarter 2012 adjusted earnings of 51 cents per share
surpassed the Zacks Consensus Estimate of 50 cents per share as
well as exceeded the year-ago adjusted earnings of 46 cents (up
Adjusted earnings exclude one-time items such as restructuring,
amortization, income tax-related and acquisition-related expenses
as well as loss on fair value adjustments and Orthodontics
business continuity costs.
However, reported profit attributable to DENTSPLY dropped 11.9%
year over year to $53.4 million (or 37 cents a share) in the
Revenues soared 12.3% year over year to $695.7 million, but fell
short of the Zacks Consensus Estimate of $712 million. Excluding
precious metal content, net sales climbed up 14.8% (up 20.1% in
constant currency) to $647.1 million. Growth was backed by
acquisitions and strong internal sales in the U.S., Europe as
well as Rest of World categories.
Gross margin in the reported quarter increased to 52.3% from
48.0% a year ago. Selling, general and administrative expenses
(as a percentage of sales) remained flat year over year at
Operating margin jumped up to 12.7% from 6.4% a year ago.
Adjusted operating margin (as a percentage of net sales,
excluding precious metal content) was 17.3% versus 17.2% in the
SIRONA DENTAL (SIRO): Free Stock Analysis
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DENTSPLY ended the third quarter with cash and cash equivalents
of $56.1 million, a decline of 31.5% year over year. Long-term
debt decreased 31% to $1,237.2 million.
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, compared with the
earlier band of $2.18 to $2.24.
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 product range.
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.