DENTSPLY SIRONA Set to Announce Q4 2024 Results Amid Revenue Challenges

DENTSPLY SIRONA Inc. (XRAY) is prepared to release its fourth-quarter 2024 results on February 27, prior to the market’s opening.

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In its most recent quarter, DENTSPLY SIRONA’s earnings exceeded the Zacks Consensus Estimate, achieving an average surprise of 1.13% over the previous four quarters.

Fourth Quarter Estimates for XRAY

The Zacks Consensus Estimate foresees revenue at $919.4 million, with anticipated earnings set at 43 cents per share.

Key Factors Ahead of Q4 Results

DENTSPLY SIRONA’s Orthodontic and Implant Solutions segment encountered revenue declines in the last quarter largely due to issues faced by Byte, alongside struggles in Implants and Prosthetics. Regulatory matters prompted the company to voluntarily halt Byte sales, marketing, and shipments. For the upcoming quarter, XRAY estimates a high-single-digit decline in organic sales, primarily connected to Byte’s sales suspension, expected to cause a $40 million drop in revenue, compounded by weak equipment demand in the U.S. The company has excluded Byte-related revenues from its future forecasts, but costs from ongoing restructuring may still exert pressure on profit margins.

In contrast, SureSmile demonstrated year-over-year growth, particularly in Europe and other international markets, although it experienced weaker demand in the United States. Challenges for Implants are anticipated to persist, driven by macroeconomic pressures and competitive scenarios. XRAY is also focused on enhancing SureSmile’s software and launching expanded sales initiatives.

During the third quarter, the Connected Technology Solutions segment reported revenue slumps but enjoyed growth in CAD/CAM products due to heightened demand for mills and intraoral scanners, alongside the introduction of Primescan 2—this trend is expected to continue in Q4.

The Essential Dental Solutions (EDS) segment previously observed significant organic growth, bolstered by $20 million in early distributor orders preceding the U.S. ERP system launch. Solid performance in China and Canada also contributed, and this success is expected to carry into the fourth quarter.

In the latest quarter, XRAY rolled out several innovative products aimed at stimulating growth. They launched the wireless intraoral scanner, Primescan 2, in September, which gained 20% more users this quarter. Additionally, the X-Smart Pro+ endo motor met its yearly sales targets by the end of Q3, and the Orthophos SL imaging series expanded into various markets across Europe and Asia-Pacific.

The company also gained regulatory approvals for five new products and updated its software platform, DS Core, with over 85 enhancements. Moving forward, XRAY plans to invest further in SureSmile orthodontics software, DS Core, and other digital tools, which are expected to support sales during the fourth quarter, particularly within the CAD/CAM and EDS segments.

Despite these efforts, the company has revised its full-year revenue guidance to $3.79-$3.82 billion while adjusting the estimated EBITDA margin to about 17.5% from greater than 18%. The projected earnings per share for Q4 falls in the low-to-mid 40 cents range, indicating projected sales weaknesses and ongoing challenges in the market.

DENTSPLY SIRONA Inc. Price and EPS Surprise

DENTSPLY SIRONA Inc. price-eps-surprise | DENTSPLY SIRONA Inc. Quote

Zacks Model Insights for XRAY

According to our model, XRAY is not expected to meet earnings targets this quarter. In general, a positive Earnings ESP coupled with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the likelihood of an earnings surprise. Unfortunately, that isn’t the situation for XRAY, as detailed below.

XRAY’s Earnings ESP: Currently, the Earnings ESP stands at -2.55%, reflecting the difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can find stocks worth considering using our Earnings ESP Filter.

XRAY’s Zacks Rank: Presently, DENTSPLY SIRONA holds a Zacks Rank #4 (Sell).

Potential Stocks to Watch

Below are notable medical stocks to consider, each holding promising characteristics to possibly outperform in this earnings cycle.

Natera (NTRA) has an Earnings ESP of +61.91% coupled with a Zacks Rank #2. This stock has consistently surpassed earnings estimates in the past four quarters, showing an average surprise of 36.37%. The Zacks Consensus Estimate for its fourth-quarter EPS suggests a 34.4% increase compared to last year.

Masimo (MASI) boasts an Earnings ESP of +4.05% and also holds the Zacks Rank #2. Expected to report its fourth-quarter results on February 25, Masimo has exceeded earnings estimates in each of the last four quarters, with an average surprise of 17.10%. The consensus estimate points to a 14.4% EPS growth year-over-year.

Maravai LifeSciences (MRVI), with an Earnings ESP of +10.00% and a Zacks Rank #3, is due to announce its fourth-quarter results in February. MRVI has achieved an average earnings surprise of 116.67% over the past four quarters, although the fourth-quarter consensus predicts a significant decline compared to the prior year.

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