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What's in Store for DENTSPLY SIRONA (XRAY) in Q3 Earnings?

Zacks Equity Research

DENTSPLY SIRONA Inc. XRAY is scheduled to release third-quarter 2019 results on Nov 7, before the opening bell.

In the last reported quarter, the company delivered a positive earnings surprise of 6.5%. Further, it has an average four-quarter positive surprise of 6.8%.

Let’s take a look at how things are shaping up prior to this announcement.

What do the Q3 Estimates Say?

For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $944.9 million, indicating an improvement of 1.8% from the year-ago quarter. The consensus estimate for the bottom line is pegged at 50 cents, suggesting growth of 31.6% from the year-ago reported figure.

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

Factors to Influence Q3

DENTSPLY SIRONA’s growth strategy focuses on product innovation, and research and development (R&D) focus, which is likely to have driven sales in the third quarter. This apart, solid track record of innovation and a dedicated, passionate workforce is likely to have contributed to the third-quarter performance.

Moreover, Technology & Equipment segment’s third-quarter performance is likely to reflect better-than-expected performance across all its products categories, equipment and instruments, digital, implants and health care. Additionally, the impact of prior-year dealer inventory stocking is likely to have contributed to the third-quarter performance.

The company’s CAD/CAM is a dental imaging platform and a major foundation in global dental markets. Product launches and innovation in this area are likely to have fueled CAD/CAM sales in the to-be-reported quarter and consequently the top line in the United States.

The company is likely to have witnessed growth in emerging markets in the to-be-reported quarter fueled by better-than-expected performance across Consumables and Technology & Equipment business lines.

Execution of cost saving opportunities is likely to impact the bottom line in 2019, a trend that that is likely to get reflected in the to-be-reported quarter.

For 2019, the company estimates revenues to range between $3.95 billion and $4.05 billion, representing growth of 4-5% over 2018. However, foreign exchange headwinds are expected to impact the company’s top line by $110 million in 2019. Moreover, portfolio streamlining initiatives that have already been implemented are anticipated to reduce 2019 revenues by approximately $70 million.

DENTSPLY SIRONA’s significant international presence poses a threat to the company’s to-be-reported quarter. Foreign exchange is estimated to negatively impact 2019 revenues of 2.5% or $100 million, given the current rates for the remainder of the year, a trend that is likely to have continued in the third quarter.

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.

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 #2.

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.

AmerisourceBergen Corporation ABC has an Earnings ESP of +0.55% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Neovasc Inc. NVCN has an Earnings ESP of +16.87% and a Zacks Rank #3.

ShockWave Medical, Inc. SWAV has an Earnings ESP of +3.55% and a Zacks Rank #3.

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Click to get this free report Neovasc Inc. (NVCN) : Free Stock Analysis Report DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research