Driven by steady growth impetus, shares of
Sirona Dental Systems, Inc.
) 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
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.
) 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.
). Both these stocks sport a Zacks Rank #1 (Strong Buy).
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