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DENTSPLY (XRAY) Beats on Earnings in Q4, Misses Revenues

DENTSPLY SIRONA Inc.XRAY reported adjusted earnings per share (EPS) of 67 cents in the fourth quarter of 2016, surpassing the Zacks Consensus Estimate by 2 cents. Earnings were also higher than 65 cents recorded in the year-ago quarter.

Stock Performance

The price performance of the stock has been unfavorable over the last three months. DENTSPLY SIRONA registered a paltry return of 0.47%, underperforming the Zacks classified Medical - Dental Supplies sub-industry's gain of almost 6.64%.

Quarter Details

Net sales increased to $996.5 million from $671.1 million in the year-ago period. However, the figure came below the Zacks Consensus Estimate of $1,019.0 million. Sales of the combined businesses increased 4.3% at constant currency (cc) exchange rates. In the reported quarter sales were affected by channel inventory reduction related to a change in distribution strategy in North America.

In the quarter, U.S. sales surged 48.2% to $329.0 million, while net sales in Europe increased 37.7% to $402.4 million. Sales of the combined business declined 5.1% at cc in the U.S., while European sales rose 7.9%.

Net sales in Rest of World increased 69.0% to $265.1 million. Sales in Rest of World of the combined businesses improved 12.5% at cc.

Segment Details

The business is organized into two reporting segments: Dental & Healthcare Consumables and Technologies.

Dental & Healthcare Consumables comprises preventive, restorative, instruments, endodontic and laboratory dental products, as well as consumable medical device products. Sales increased 5.6% to $513.3 million. At cc, sales of the combined entity rose 3.4% year over year in the quarter.

Technologies consist of dental implants, CAD/CAM systems, imaging systems, treatment centers and orthodontic products. Net sales increased 160.9% to $483.2 million. At cc, sales of the combined business climbed 5.2% in the quarter.

Financial Update

Total cash and cash equivalents of the company increased to $383.9 million as of Dec 31, 2016 from $284.6 million as of Dec 31, 2015.

Cash generated from operations in 2016 was $563.4 million compared with $497.4 million in 2015.

As of Dec 31, 2016, DaVita's long-term debt was $1.5 billion, up from $1.1 billion at year-end 2015.

Guidance

For full-year 2017, the company anticipates adjusted EPS in the range of $2.80 to $2.90.

DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise

DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise | DENTSPLY SIRONA Inc. Quote

Zacks Rank & Key Picks

Currently, DENTSPLY carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the broader medical sector include Glaukos Corporation GKOS , Avinger, Inc. AVGR and Fluidigm Corporation FLDM . Notably, Glaukos sports a Zacks Rank #1 (Strong Buy) while Avinger and Fluidigm carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock registered an impressive one-year return of 180.8%.

Avinger projects sales growth of 30.7% for the current year. Additionally, the company posted a positive earnings surprise of 27% last quarter.

Fluidigm Corporation has a long-term expected earnings growth of 25%. The stock has added 10.3% over the last one-year.

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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 Nasdaq, Inc.


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

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