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What's in Store for DENTSPLY SIRONA (XRAY) in Q2 Earnings?
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DENTSPLY SIRONA Inc. (XRAY - Free Report) is scheduled to release second-quarter 2024 results on Jul 31, before the opening bell.
In the last reported quarter, the company’s earnings aligned with the Zacks Consensus Estimate. It delivered an average earnings surprise of 5.8% in the past four quarters.
Q2 Estimates
The Zacks Consensus Estimate for revenues is pegged at $995.4 million. The consensus mark for earnings is pinned at 50 cents per share.
Factors to Note
DENTSPLY SIRONA’s Orthodontic and Implant Solutions segment witnessed organic revenue growth in the last reported quarter on the back of strong demand for SureSmile, which continues to benefit from market share gains and new product offerings. Per management, the company is likely to expand further in certain international markets, including Japan and Brazil, which is likely to lead to the continued momentum of SureSmile. The company’s expectation of SureSmile growing more than 20% in 2024 is likely to have been reflected in the to-be-reported quarter.
XRAY’s Aligners saw growth in sales in the last reported quarter. Improved customer conversion rates and lower customer acquisition costs benefited aligner brand Byte. The trend is likely to have continued in the quarter to be reported.
In the first quarter of 2024, XRAY’s CTS segment declined significantly and the company expects further decline in the segment for the upcoming quarters as well. However, management expects to witness some improvements in the latter half of the year compared with the first half. The CAD/CAM segment is likely to have witnessed growth in the to-be-reported quarter on the back of increasing demand.
DENTSPLY SIRONA’s Wellspect Healthcare business reported strong growth in the last reported quarter. The company expects further growth in this segment in the second quarter of 2024.
For the second quarter, the company expects organic sales to decline compared with the prior-year quarter, with lightly lower reported sales due to a negative impact of foreign currency movement. However, on a sequential basis, the reported sales are expected to increase in the second quarter based on normal seasonality. XRAY anticipates second-quarter adjusted EPS to be down slightly year over year, primarily due to a higher tax rate, partially offset by a slight improvement in adjusted EBITDA margin.
Our proven model does not conclusively predict earnings beat for XRAY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -1.33%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: DENTSPLY SIRONA currently carries a Zacks Rank #3.
Stocks to Consider
Here are a few other medical stocks worth considering, as these also have the right combination of elements to beat on earnings this reporting cycle.
The company’s shares have surged 25.3% year to date. MCK’s earnings missed estimates in the last reported quarter. McKesson has a four-quarter average earnings surprise of 8.38%.
Inari Medical (NARI - Free Report) has an Earnings ESP of +45.95% and a Zacks Rank of 3 at present.
The company’s shares have lost 15.4% year to date. NARI’s earnings missed estimates in the last reported quarter. Inari Medical has a trailing four-quarter average earnings surprise of 130.74%.
AxoGen (AXGN - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank of 3 at present.
The stock has risen 33.5% year to date. AXGN’s earnings beat estimates in the last reported quarter. AxoGen has a four-quarter average earnings surprise of 66.46%.
Image: Bigstock
What's in Store for DENTSPLY SIRONA (XRAY) in Q2 Earnings?
DENTSPLY SIRONA Inc. (XRAY - Free Report) is scheduled to release second-quarter 2024 results on Jul 31, before the opening bell.
In the last reported quarter, the company’s earnings aligned with the Zacks Consensus Estimate. It delivered an average earnings surprise of 5.8% in the past four quarters.
Q2 Estimates
The Zacks Consensus Estimate for revenues is pegged at $995.4 million. The consensus mark for earnings is pinned at 50 cents per share.
Factors to Note
DENTSPLY SIRONA’s Orthodontic and Implant Solutions segment witnessed organic revenue growth in the last reported quarter on the back of strong demand for SureSmile, which continues to benefit from market share gains and new product offerings. Per management, the company is likely to expand further in certain international markets, including Japan and Brazil, which is likely to lead to the continued momentum of SureSmile. The company’s expectation of SureSmile growing more than 20% in 2024 is likely to have been reflected in the to-be-reported quarter.
XRAY’s Aligners saw growth in sales in the last reported quarter. Improved customer conversion rates and lower customer acquisition costs benefited aligner brand Byte. The trend is likely to have continued in the quarter to be reported.
In the first quarter of 2024, XRAY’s CTS segment declined significantly and the company expects further decline in the segment for the upcoming quarters as well. However, management expects to witness some improvements in the latter half of the year compared with the first half. The CAD/CAM segment is likely to have witnessed growth in the to-be-reported quarter on the back of increasing demand.
DENTSPLY SIRONA’s Wellspect Healthcare business reported strong growth in the last reported quarter. The company expects further growth in this segment in the second quarter of 2024.
For the second quarter, the company expects organic sales to decline compared with the prior-year quarter, with lightly lower reported sales due to a negative impact of foreign currency movement. However, on a sequential basis, the reported sales are expected to increase in the second quarter based on normal seasonality. XRAY anticipates second-quarter adjusted EPS to be down slightly year over year, primarily due to a higher tax rate, partially offset by a slight improvement in adjusted EBITDA margin.
DENTSPLY SIRONA Inc. Price and EPS Surprise
DENTSPLY SIRONA Inc. price-eps-surprise | DENTSPLY SIRONA Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict earnings beat for XRAY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -1.33%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: DENTSPLY SIRONA currently carries a Zacks Rank #3.
Stocks to Consider
Here are a few other medical stocks worth considering, as these also have the right combination of elements to beat on earnings this reporting cycle.
McKesson (MCK - Free Report) has an Earnings ESP of +0.19% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s shares have surged 25.3% year to date. MCK’s earnings missed estimates in the last reported quarter. McKesson has a four-quarter average earnings surprise of 8.38%.
Inari Medical (NARI - Free Report) has an Earnings ESP of +45.95% and a Zacks Rank of 3 at present.
The company’s shares have lost 15.4% year to date. NARI’s earnings missed estimates in the last reported quarter. Inari Medical has a trailing four-quarter average earnings surprise of 130.74%.
AxoGen (AXGN - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank of 3 at present.
The stock has risen 33.5% year to date. AXGN’s earnings beat estimates in the last reported quarter. AxoGen has a four-quarter average earnings surprise of 66.46%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.