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DENTSPLY SIRONA Inc. XRAY is scheduled to release third-quarter 2021 results on Nov 4, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 9.2%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 53.8%.
For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $1.03 billion, indicating an improvement of 14.9% from the year-ago quarter. The consensus mark for earnings stands at 66 cents per share, suggesting a decline of 1.5% from the prior-year quarter.
Factors to Note
DENTSPLY SIRONA’s Consumables segment is likely to have witnessed improvement in revenues in the third quarter. Rebound in sales of all product categories might have contributed to the upside.
Technologies & Equipment segment may have exhibited growth in the third quarter, courtesy of recovery in across all product categories.
The company’s growth strategy has been focused on product innovation, and research and development (R&D). Per the first-quarter 2021 earnings call, the company’s R&D has increased substantially in 2021. According to management, this trend is likely to continue in the near future as the company is focused on delivering innovation and excellent solutions to its customers. In fact, in the second quarter, the company’s spending on R&D was up 12.2% to $40 million, and the momentum is anticipated to have continued in the to-be-reported quarter.
DENTSPLY SIRONA Inc. Price and EPS Surprise
DENTSPLY SIRONA Inc. price-eps-surprise | DENTSPLY SIRONA Inc. Quote
The company continued gaining from the launch of Axeos, Primemill and SureFil one as these received favorable customer feedback through the fourth quarter of 2020. Apart from these proven products, the company has an excellent product pipeline that will positively impact 2021 and beyond. Consequently, third-quarter 2021 results are likely to reflect the impact of the same.
During the second quarter of 2021, the company announced the buyout of Propel Orthodontics and a strategic partnership with 3Shape. These deals (which will not have any material impact on the third-quarter results) will further complement the company’s clear aligners offering.
Sustained improvement in sales trends owing to reopening of dental offices and rise in patient visits might have favored the company’s performance in the to-be-reported quarter.
However, DENTSPLY SIRONA’s significant international presence may have weighed on the third-quarter performance. The impact of foreign exchange headwinds might 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 not the case here as you will see.
Earnings ESP: DENTSPLY SIRONA has an Earnings ESP of 0.00%. 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 #4 (Sell).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Insulet Corporation PODD has an Earnings ESP of +15.79% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canopy Growth Corporation CGC has an Earnings ESP of +26.83% and a Zacks Rank of 3.
Cardiovascular Systems, Inc. CSII has an Earnings ESP of +50.82% and a Zacks Rank of 3.
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DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
Cardiovascular Systems, Inc. (CSII) : Free Stock Analysis Report
Canopy Growth Corporation (CGC) : Free Stock Analysis Report
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