On Apr 1, 2013, we retained
DENTSPLY International Inc.
) at Neutral after the company beat Zacks Consensus Estimates for
earnings and revenue for fourth quarter 2012.
Why the Retention?
DENTSPLY released its results for the fourth quarter on Feb
20. The company posted adjusted earnings per share of 56 cents
per share, which was better than the Zacks Consensus Estimate of
earnings of 55 cents a share.
Revenues in the reported quarter improved 2.1% year over year
to $753.3 million, beating the Zacks Consensus Estimate of $747
million. Excluding precious metal content, net sales increased
3.8% (up 5.9% in constant currency) to $703.5 million.
Over the past 60 days, the Zacks Consensus Estimate for 2013
has dropped by 2 cents to $2.43. For 2014, the Zacks Consensus
Estimate has moved up by two pennies to $2.68 during the same
Based on the improving global dental market trends along with
the impact of currency rates, DENTSPLY expects to generate
adjusted earnings per share in the band of $2.38 and $2.48 for
DENTSPLY's overall growth strategy rests on product
innovation. It boasts solid internal growth despite often
challenging macroeconomic headwinds on the back of innovative new
products. Furthermore, DENTSPLY has a strong international
presence. The company's products are used in over 120 countries.
Finally, the company has a healthy pipeline for 2013.
DENTSPLY's acquisition of Astra Tech has reinforced its
foothold in the global dental market. DENTSPLY expects to benefit
from the gradual recovery in the global dental market. We believe
that the current reasonable condition of the world economy offers
only modest growth prospects.
Other Stocks to Consider
We currently have a Zacks Rank #3 (Hold) on DENTSPLY. We are
more positive about
Becton, Dickinson and Company
The Cooper Companies Inc.
Henry Schein, Inc.
) each of which carry a Zacks Rank #2 (Buy) and are expected to
BECTON DICKINSO (BDX): Free Stock Analysis
COOPER COS (COO): Free Stock Analysis Report
HENRY SCHEIN IN (HSIC): Free Stock Analysis
DENTSPLY INTL (XRAY): Free Stock Analysis
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