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DENTSPLY SIRONA (XRAY) Q4 Earnings & Revenues Miss Estimates

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DENTSPLY SIRONA Inc. XRAY reported fourth-quarter 2021 adjusted earnings per share (EPS) of 76 cents, missing the Zacks Consensus Estimate of 79 cents by 3.8%. The bottom line declined 12.6% on a year-over-year basis.

GAAP EPS in the quarter was 47 cents, up 4.4% from the year-ago quarter.

For the full-year 2021, the company reported an adjusted EPS of $2.87, up 60.3% from the previous year. The figure lagged the consensus mark by 0.7%.

Revenues

Revenues in the quarter under review amounted to $1.09 billion, missing the Zacks Consensus Estimate by 3.6%. The top line increased 0.6% year over year. Sales grew 1.8% on an organic basis.

In 2021, the company reported $4.23 billion, up 27.2% from the previous year. On an organic basis, sales grew 24.6%. The figure, however, missed the consensus mark by 1.4%.

Business Details

Consumables

Consumable revenues fell 8.3% year over year and 4.6% on an organic basis in the fourth quarter to $412 million. Per management, the downside was due to a tough comparison in the prior-year quarter on account of the COVID-19 rebound and the timing of purchases ahead of the annual price increase. However, increased pricing partially negated the downside.

DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise

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

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

Technologies & Equipment

Technologies & Equipment revenues were up 6.8% year over year to $676 million in the reported quarter. On an organic basis, net sales rose 6.5%. Strength in CAD/CAM (computer-aided-design and computer-aided-manufacturing), Implants and Orthodontics contributed to the improvement. However, supply chain constraints partially offset the upside.

Revenues by Geography

In the United States, revenues increased 7.2% to $385 million. Rest of World revenues fell 3.4% year over year to $266 million. European revenues declined 2.4% year over year to $437 million.

Margin Analysis

Gross profit in the reported quarter amounted to $593 million, up 3.9% on a year-over-year basis. Gross margin was 54.5%, expanding 170 basis points (bps).

Selling, general and administrative expenses were $374 million, down 0.8% from the year-ago quarter. Research and development expenses amounted to $59 million, up 34.1% from the prior-year quarter.

Operating profit was $154 million, up 14.1% from the year-ago quarter. Operating margin was 14.2%, expanding 170 bps on a year-over-year basis.

Financial Condition

DENTSPLY SIRONA exited the fourth quarter of 2021 with cash and cash equivalents of $339 million, up from $281 million in the third quarter of 2021.

Cumulative net cash provided by operating activities at the end of the fourth quarter was $657 million compared with $635 million in the year-ago period.

Share Repurchase and Dividend Update

During the quarter, DENTSPLY SIRONA repurchased shares worth $110 million, while it repurchased shares worth $200 million in 2021. The company had $890 million of authorization remaining under the $1 billion share repurchase program at the end of Dec 31, 2021.

With respect to the dividend, DENTSPLY SIRONA’s board of directors approved a double-digit increase in the company’s quarterly dividend rate, from the prior rate of 11 cents per share to 12.5 cents per share.

2022 Guidance

The company projects 2022 revenues within $4.3-$4.4 billion. The Zacks Consensus Estimate for the same is pegged at $4.47 billion. The outlook includes organic sales growth of 4-5%.

The company expects an adjusted EPS of $3.05-$3.25, up 6-13% on a year-over-year basis. The Zacks Consensus Estimate for the same stands at $3.18.

Our Take

DENTSPLY SIRONA ended the fourth quarter on a weak note, wherein both earnings and revenues missed the consensus mark. The company saw revenue growth in the Technologies & Equipment segment in the quarter. It witnessed higher revenues in the domestic market. Expansion in both gross and operating margins is another plus.

Per management, the fourth-quarter performance reflects the resilience of the dental market and its solid global product portfolio. Significant collaborations, the introduction of a medical-grade 3D printing system for dental practices and dividend hike are highlights.

However, the rise in selling, general and administrative expenses remains a concern. Weakness at Consumables segment is discouraging.

Zacks Rank and Key Picks

Currently, DENTSPLY SIRONA has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Henry Schein, Inc. HSIC, Quidel Corporation QDEL and Bio-Rad Laboratories, Inc. BIO.

Henry Schein, carrying a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2021 adjusted earnings of $1.07 per share, which beat the Zacks Consensus Estimate by 18.9%. Revenues of $3.33 billion outpaced the consensus mark by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Henry Schein has an estimated long-term growth rate of 11.8%. HSIC surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.5%.

Quidel reported fourth-quarter 2021 adjusted EPS of $7.29, which surpassed the Zacks Consensus Estimate by 49.1%. Fourth-quarter revenues of $636.9 million outpaced the Zacks Consensus Estimate by 0.3%. It currently carries a Zacks Rank #1.

Quidel’s earnings yield of 8.4% compares favorably with the industry’s (0.7%). QDEL surpassed earnings estimates in two of the trailing four quarters and missed twice, the average surprise being 129.4%.

Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. Fourth-quarter revenues of $732.8 million outpaced the Zacks Consensus Estimate by 0.5%. It currently has a Zacks Rank #2 (Buy).

Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in each of the trailing four quarters, the average surprise being 66.9%.


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DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report

Henry Schein, Inc. (HSIC) : Free Stock Analysis Report

BioRad Laboratories, Inc. (BIO) : Free Stock Analysis Report

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