What's in Store for DENTSPLY SIRONA (XRAY) in Q4 Earnings?
DENTSPLY SIRONA Inc. XRAY is scheduled to release fourth-quarter 2023 results on Feb 29, before the opening bell.
In the last reported quarter, the company’s earnings beat estimates by 2.08%. It delivered an average earnings surprise of 20.65% in the past four quarters.
Q4 Estimates
The Zacks Consensus Estimate for revenues is pegged at $966.8 million. The consensus mark for earnings is pinned at 43 cents per share.
Factors to Note
DENTSPLY SIRONA’s Technologies & Equipment segment is likely to have witnessed organic growth in the quarter under review. Higher demand for clear aligners is expected to have driven the segment’s sales growth, partially offset by weakness in CAD/CAM. Implant sales in China are likely to have reflected the adverse impact of volume-based procurement policy in the country. This must have resulted in lower price per product, especially high-value products.
Strong retail demand for consumable products might have benefited the Consumable segment’s sales during the to-be-reported quarter.
Foreign currency movement had a negative impact on XRAY’s total revenues during the third quarter. The trend is likely to have continued in the fourth quarter as well.
On its third-quarter earnings call, XRAY’s management stated that market share gains, regional expansion and new product offerings benefited SureSmile. Improved customer conversion rates and lower customer acquisition costs benefited aligner brand Byte. The trend is likely to have continued in the quarter to be reported.
However, a volatile macroeconomic environment raises uncertainty. Inflationary pressure, coupled with commercial investments and restructuring and remediation costs, is likely to have fueled operating expenses during the soon-to-be-reported quarter, thereby hurting margins. The company is expected to provide an updated view on macro headwinds and business performance on its fourth-quarter earnings call.
The company provided a lowered guidance for both its top and bottom lines on its third-quarter earnings call, reflecting a challenging macro-environment, particularly in Germany and the United States. This is likely to be reflected in the fourth-quarter results. Soft demand in Europe is also likely to have hurt sales.
DENTSPLY SIRONA Inc. Price and EPS Surprise
DENTSPLY SIRONA Inc. price-eps-surprise | DENTSPLY SIRONA Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for PDCO this time around. 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 below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% for DENTSPLY SIRONA. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: DENTSPLY SIRONA currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
SiBone SIBN has an Earnings ESP of +1.75% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SIBN has an estimated earnings growth rate of 36.3% for fiscal 2023. It delivered a trailing four-quarter average earnings surprise of 24.21%.
Merit Medical Systems MMSI has an Earnings ESP of +0.43% and a Zacks Rank of 3 at present.
The stock has an estimated earnings growth rate of 10% for fiscal 2023. MMSI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 14.41%.
Universal Health Services UHS has an Earnings ESP of +1.44% and a Zacks Rank #3 at present. UHS has an estimated earnings growth rate of 5.3% for 2023.
UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 5.47%.
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Universal Health Services, Inc. (UHS) : Free Stock Analysis Report
DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report
Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report
SiBone (SIBN) : Free Stock Analysis Report
