Sirona Dental Hits New 52-Week High - Analyst Blog


Driven by steady growth impetus, shares of Sirona Dental Systems, Inc. ( SIRO ) reached a new 52-week high of $82.15 in mid-day trading on Jun 26. The company's shares closed marginally lower at $82.08 on the same day, translating to a healthy one-year return of 26.0% and a decent year-to-date return of 16.9%.

SIRO has a market cap of $4.7 billion while average volume of shares traded over the last 3 months stands at approximately 0.4 million.

Shares of this global dental technology company have been on the rise since it reported impressive fiscal 2014 second-quarter (ended Mar 31, 2014) results on May 9. The stock climbed 1.2% on the same day, reflecting investors' confidence in the company.

SIRO posted a 6.7% year-over-year improvement in adjusted earnings per share to 80 cents in the most recent quarter. Earnings also edged past the Zacks Consensus Estimate by 2 cents.

Revenues in the quarter grew 5.8% (or 2.9% on a constant currency basis) to $282.7 million, driven by strength across all business segments. SIRO continues to witness strong demand for its Imaging and CAD/CAM products.

For fiscal 2014, SIRO retained its revenues and earnings guidance. The company anticipates adjusted earnings in the range of $3.60 to $3.70 per share, implying a year-over-year growth of 6-9%.  The Zacks Consensus Estimate of $3.67 lies within the guided range.

SIRO continues to expect revenue growth in the range of 4-6% in constant currency. The projection assumes 20% constant currency growth in two of the company's major markets, the U.S. and Germany.

Earlier this month, Henry Schein, Inc. ( HSIC ) acquired SIRO's direct sales business in France, Sirona Direct. Henry Schein is a global distributor of healthcare products and services with global dental sales of around $5 billion in 2013.

Per the deal, Henry Schein will exclusively promote and distribute SIRO's full line of dental equipment, including the CEREC CAD/CAM system, to practitioners across France. By intensifying its partnership with Henry Schein, SIRO intends to expand its customer base and secure long-term, profitable growth in one of Europe's largest dental markets.

Currently, SIRO carries a Zacks Rank #3 (Hold). Better-ranked stocks in the medical instruments industry include Alphatec Holdings, Inc. ( ATEC ) and Luminex Corporation ( LMNX ). Both these stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: LMNX , HSIC , SIRO , ATEC

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