DENTSPLY (XRAY) Earnings And Revenues Miss Estimates In Q2

DENTSPLY SIRONA Inc. (NASDAQ:XRAY) reported adjusted earnings per share (EPS) of 65 cents in the second quarter of 2017, missing the Zacks Consensus Estimate by a penny. Earnings were also lower than 76 cents recorded in the year-ago quarter.

Quarter Details

Net sales decreased to $992.7 million from $1,022.0 million in the year-ago period. Also, the figure lagged the Zacks Consensus Estimate of $1,004.0 million. Sales of the combined businesses decreased 2.2% at constant currency (cc) exchange rates. In the reported quarter, sales were affected by inventory reduction related to a change in the distribution strategy in North America and lower equipment sales to end users.

In the quarter, U.S. sales fell 9.7% to $331.6 million, while net sales in Europe increased 2.5% to $402.2 million. Sales of the combined business declined 9.6% at cc in the U.S., while European sales rose 5.7%.

Net sales in Rest of World decreased 1.3% to $258.9 million. Sales in Rest of World of the combined business rose 1.3% 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 1.9% to $554.1 million. At cc, sales of the segment rose 3.0% year over year in the quarter.

Technologies consist of dental implants, CAD/CAM systems, imaging systems, treatment centers and orthodontic products. Net sales decreased 8.3% to $438.6 million. At cc, sales of the combined business fell 5.6% in the reported quarter.

DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise

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

Financial Update

Total cash and cash equivalents of the company decreased to $268.4 million as of Jun 30 from $383.9 million as of Dec 31, 2016. Cash generated from operations in the first half of 2017 was $208.7 million compared with $188.1 million in the year-ago period. As of Jun 30, the company’s long-term debt was $1.59 billion versus $1.51 billion at year-end 2016.

Guidance

For 2017, the company anticipates adjusted EPS in the range of $2.65 to $2.75.

Zacks Rank & Key Picks

Currently, DENTSPLY carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical sector are Edwards Lifesciences Corporation (NYSE:EW) , Fresenius Medical Care Corporation (NYSE:FMS) and Dextera Surgical Inc. (NASDAQ:DXTR) .

Notably, Edwards Lifesciences and Fresenius Medical sport a Zacks Rank #1 (Strong Buy), while Dextera has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. Notably, the stock has returned 5.9% over the last three months.

Fresenius Medical yielded a strong return of 9.3% year to date. The stock has a long-term expected earnings growth rate of 10.1%.

Dextera has a projected sales growth of 54.8% for the current year. The stock promises a long-term expected earnings growth rate of 25%.

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