DENTSPLY International Grows on Product Innovation
On Oct 15, we have updated our research report on DENTSPLY International Inc. (XRAY). Despite sluggish market in the U.S. and Europe, we believe a diversified product range and significant investments in product innovation should help the company expand its share in the dental market.
DENTSPLY International’s overall growth strategy rests on product innovation. It boasts of solid internal growth, despite frequent challenging macroeconomic headwinds, on the back of innovative new products and consistent strong performance.
DENTSPLY International is benefiting from the gradual recovery of the U.S. economy. Not viewed as a life-sustaining product, the dental market was badly affected by the economic downturn that resulted in patients deferring its adoption. Management expects a 5.1–8.5% rise in earnings per share in 2014 based on better global market conditions
However, DENTSPLY International conducts its operations, both domestic and foreign, under highly competitive market conditions. The size and number of the company’s competitors vary by product line and from region to region.
Further, a strengthening U.S. dollar, especially against the euro, as well as emerging market currencies is negatively impacting the company’s results.
DENTSPLY International expects to reports its 2014-third quarter results on Oct 29. In the last quarter, the company posted earnings surprise of 1.5% by recording adjusted net earnings per share of 69 cents.
Net revenues in the quarter edged up 0.6% to $765.2 million but fell shy of the Zacks Consensus Estimate of $780 million. The decrease was attributable to sluggish market in both the U.S. and Europe. Excluding precious metals content, net revenues rose 2.1% to $730.9 million.
The Zacks Consensus Estimates for the 2014-third quarter revenues and earnings stand at $731 million and 60 cents, respectively.
Currently, DENTSPLY International sports a Zacks Rank #1 (Strong Buy). Other stocks in the medical/dental supplies industry that are performing well include The Cooper Companies Inc. (COO), Cardinal Health, Inc. (CAH), and Henry Schein, Inc. (HSIC). The Cooper Companies sports a Zacks Rank #1 (Strong Buy), while both Cardinal Health and Henry Schein retain a Zacks Rank #2 (Buy).
Read the Full Research Report on CAH
Read the Full Research Report on XRAY
Read the Full Research Report on HSIC
Read the Full Research Report on COO
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