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DENTSPLY SIRONA (XRAY) to Post Q2 Earnings: What's in Store?

Zacks Equity Research

DENTSPLY SIRONA Inc. XRAY is scheduled to release second-quarter 2020 results on Aug 6, before the opening bell.

In the last reported quarter, the company delivered a earnings surprise of 14%. Further, it has a trailing four-quarter positive earnings surprise of 14.2%, on average.

Q2 Estimates

For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $510.3 million, indicating a decline of 49.5% from the year-ago quarter. The consensus mark for the bottom line is pegged at a loss of 3 cents.

Factors to Note

DENTSPLY SIRONA’s Consumables segment is likely to have witnessed decline in revenues in the second quarter. The weak performance can be attributable to fall in organic sales resulting from lower demand across all three regions due to lower visits by dentists and customers and procedures on account of the COVID-19 pandemic.

Moreover, the company’s Technology & Equipment segment’s second-quarter results are likely to reflect weak performance across all its products categories, equipment and instruments, and implants owing to the pandemic.

The company’s CAD/CAM is a dental imaging platform and a significant presence in global dental markets. Product launches and innovation in this area might have driven CAD/CAM sales in the to-be-reported quarter. This, in turn, is likely to have contributed to the company’s top line in the United States.

DENTSPLY SIRONA Inc. Price and EPS Surprise

DENTSPLY SIRONA Inc. Price and EPS Surprise
DENTSPLY SIRONA Inc. Price and EPS Surprise

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

However, the impact of the pandemic in the second quarter may have weighed on the company’s dental imaging platform’s performance.

DENTSPLY SIRONA’s Primescan — a digital impression scanner, and Primemill, another addition to the CEREC product portfolio in January, are likely to have positively impacted the company’s second-quarter performance.

The company’s growth strategy has been focused on product innovation, and research and development (R&D) focus, which may have benefited the company’s second-quarter performance. Apart from this, solid track record of innovation and a dedicated, passionate workforce is likely to have contributed to the to-be-reported quarter’s performance.

However, DENTSPLY SIRONA’s significant international presence may have weighed on the company’s second-quarter performance. Foreign exchange headwind is likely to get reflected in the to-be-reported quarter’s results.

What Our Quantitative Model Suggests

Per our proven model, 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 the case here as you will see.

Earnings ESP: DENTSPLY SIRONA has an Earnings ESP of +137.50%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: DENTSPLY SIRONA carries a Zacks Rank #3.

Other Stocks Worth a Look

Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.

Integra LifeSciences Holdings Corporation IART has an Earnings ESP of +20.69% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticals plc GWPH has an Earnings ESP of +17.38% and a Zacks Rank of 3.

Nevro Corp. NVRO has an Earnings ESP of +15.17% and a Zacks Rank of 3.

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DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report
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GW Pharmaceuticals PLC (GWPH) : Free Stock Analysis Report
Nevro Corp. (NVRO) : Free Stock Analysis Report
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