We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Envista (NVST) Down 18.2% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Envista (NVST - Free Report) . Shares have lost about 18.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Envista due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
NVST Q4 Earnings and Revenues Beat, Operating Margin Crashes
Envista reported fourth-quarter 2024 adjusted earnings per share (EPS) of 24 cents, down 17.2% year over year. The bottom line surpassed the Zacks Consensus Estimate by 4.3%.
The adjustments include non-cash charges related to the amortization of acquisition-related and other intangible assets, restructuring costs and asset impairments, among others.
The company’s GAAP EPS was 1 cent compared with the year-ago quarter’s loss of $1.27 per share.
The full-year adjusted EPS was 73 cents, reflecting a 52.3% decrease from the 2023 figure.
NVST’s Revenues
Revenues totaled $652.9 million, up 1.1% year over year. The metric topped the Zacks Consensus Estimate by 1.1%.
Full-year revenues totaled $2.51 billion, down 2.2% from the 2023 level.
Segmental Details of Q4 Revenues
In the fourth quarter, Specialty Products & Technologies’ revenues totaled $410.9 million, down 1.2% year over year.
Revenues from the Equipment & Consumables segment increased 5.3% year over year to $242 million.
NVST’s Operational Update
The gross profit in the reported quarter rose 10.8% year over year to $372.5 million. The gross margin expanded 498 basis points (bps) to 57.1% due to a 9.4% decline in the cost of sales.
Selling, general and administrative expenses rose 15.2% year over year to $299.7 million. Research and development expenses rose 32.2% to $26.7 million.
The operating profit of $46.1 million fell 17.4% year over year. The operating margin contracted 158 bps to 7.1%.
NVST’s Financial Update
Envista ended the fourth quarter of 2024 with cash and cash equivalents of $1.07 billion compared with $940 million at the end of 2023. Long-term debt amounted to $1.28 billion compared with $1.40 billion in the comparable period of 2023.
Year to date, net cash provided by operating activities amounted to $336.5 million compared with $275.7 million a year ago.
2025 Guidance
Envista expects core sales growth to be between 1% and 3% and adjusted EBITDA margins to be approximately 14%. The Zacks Consensus Estimate for 2025 revenues is pegged at $2.56 billion, suggesting a 2.1% increase from the year-ago reported figure.
Adjusted earnings per share are anticipated to be in the band of $0.95-$1.05. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.10.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -16.52% due to these changes.
VGM Scores
Currently, Envista has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Envista has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Envista belongs to the Zacks Medical - Products industry. Another stock from the same industry, Abbott (ABT - Free Report) , has gained 5.4% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.
Abbott reported revenues of $10.97 billion in the last reported quarter, representing a year-over-year change of +7.2%. EPS of $1.34 for the same period compares with $1.19 a year ago.
Abbott is expected to post earnings of $1.07 per share for the current quarter, representing a year-over-year change of +9.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of D.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Envista (NVST) Down 18.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Envista (NVST - Free Report) . Shares have lost about 18.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Envista due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
NVST Q4 Earnings and Revenues Beat, Operating Margin Crashes
Envista reported fourth-quarter 2024 adjusted earnings per share (EPS) of 24 cents, down 17.2% year over year. The bottom line surpassed the Zacks Consensus Estimate by 4.3%.
The adjustments include non-cash charges related to the amortization of acquisition-related and other intangible assets, restructuring costs and asset impairments, among others.
The company’s GAAP EPS was 1 cent compared with the year-ago quarter’s loss of $1.27 per share.
The full-year adjusted EPS was 73 cents, reflecting a 52.3% decrease from the 2023 figure.
NVST’s Revenues
Revenues totaled $652.9 million, up 1.1% year over year. The metric topped the Zacks Consensus Estimate by 1.1%.
Full-year revenues totaled $2.51 billion, down 2.2% from the 2023 level.
Segmental Details of Q4 Revenues
In the fourth quarter, Specialty Products & Technologies’ revenues totaled $410.9 million, down 1.2% year over year.
Revenues from the Equipment & Consumables segment increased 5.3% year over year to $242 million.
NVST’s Operational Update
The gross profit in the reported quarter rose 10.8% year over year to $372.5 million. The gross margin expanded 498 basis points (bps) to 57.1% due to a 9.4% decline in the cost of sales.
Selling, general and administrative expenses rose 15.2% year over year to $299.7 million. Research and development expenses rose 32.2% to $26.7 million.
The operating profit of $46.1 million fell 17.4% year over year. The operating margin contracted 158 bps to 7.1%.
NVST’s Financial Update
Envista ended the fourth quarter of 2024 with cash and cash equivalents of $1.07 billion compared with $940 million at the end of 2023. Long-term debt amounted to $1.28 billion compared with $1.40 billion in the comparable period of 2023.
Year to date, net cash provided by operating activities amounted to $336.5 million compared with $275.7 million a year ago.
2025 Guidance
Envista expects core sales growth to be between 1% and 3% and adjusted EBITDA margins to be approximately 14%. The Zacks Consensus Estimate for 2025 revenues is pegged at $2.56 billion, suggesting a 2.1% increase from the year-ago reported figure.
Adjusted earnings per share are anticipated to be in the band of $0.95-$1.05. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.10.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -16.52% due to these changes.
VGM Scores
Currently, Envista has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Envista has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Envista belongs to the Zacks Medical - Products industry. Another stock from the same industry, Abbott (ABT - Free Report) , has gained 5.4% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.
Abbott reported revenues of $10.97 billion in the last reported quarter, representing a year-over-year change of +7.2%. EPS of $1.34 for the same period compares with $1.19 a year ago.
Abbott is expected to post earnings of $1.07 per share for the current quarter, representing a year-over-year change of +9.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of D.