23 Nov

Analyzing Sirona Dental Systems’ Rise in Revenue in Fiscal 4Q15

WRITTEN BY Gabriel Kane

Sirona Dental Systems’ price movement

Sirona Dental Systems (SIRO) has a market cap of $6.1 billion. After the release of the company’s 4Q15 earnings report, SIRO rose by 0.23% to close at $109.22 per share on November 20, 2015. SIRO’s price movements on weekly, monthly, and YTD bases are 4.1%, 2.3%, and 25.0%, respectively.

Analyzing Sirona Dental Systems’ Rise in Revenue in Fiscal 4Q15

At times, the stock broke the support of 20-day and 50-day moving averages in fiscal 2015. Currently, SIRO is trading 0.89% above its 20-day moving average, 6.1% above its 50-day moving average, and 12.0% above its 200-day moving average.

The SPDR S&P Health Care Equipment ETF (XHE) invests 1.7% of its holdings in Sirona Dental Systems. The ETF tracks an equal-weighted index of US healthcare equipment and supplies companies. The YTD price movement of XHE is 5.9%, as of November 19, 2015. The iShares Dow Jones US Medical Devices ETF (IHI) invests 1.5% of its holdings in Sirona Dental Systems.

Sirona Dental Systems’ competitors (SIRO) and their market caps are listed below:

  • Danaher Corporation (DHR)—$66.7 billion
  • Align Technology (ALGN)—$5.3 billion
  • Patterson Companies (PDCO)—$5.0 billion

Sirona Dental Systems’ performance in fiscal 4Q15 and fiscal 2015

Sirona Dental Systems reported fiscal 4Q15 revenue of $304.9 million, a rise of 5.1% when compared to revenue of $290.0 million in fiscal 4Q14. The cost of goods sold as a percentage of revenue and operating income rose by 2.3% and 11.7%, respectively, in 4Q15, as compared to 4Q14.

Its net income and EPS (earnings per share) rose to $45.4 million and $0.80, respectively, in 4Q15, as compared to net income and EPS of $42.7 million and $0.76, respectively, in 4Q14. In 4Q15, the company’s non-GAAP adjusted net income and EPS rose 21.1% and 20.4% to $63.0 million and $1.12, respectively, as compared to 4Q14.

Sirona Dental Systems (SIRO) and DENTSPLY International (XRAY) have approved a definitive merger agreement under which the companies will combine in an all-stock merger of equals. This transaction will result in the largest manufacturer of professional dental products and technologies with an implied pro forma equity value of ~$13.3 billion, based on closing prices of SIRO and XRAY on September 14, 2015. According to the merger announcement on September 15, 2015, the new company will have a net revenue of ~$3.8 billion and an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of more than $900 million on a pro forma basis. This transaction will be completed in the first quarter of calendar year 2016.

Fiscal 2015 results

In fiscal 2015, the company reported revenue of $1,161.3 million, a fall of 0.83% YoY (year-over-year). The company’s gross profit margin and operating income rose by 1.9% and 8.5%, respectively, in fiscal 2015. Its net income and EPS rose to $186.2 million and $3.30, respectively, in fiscal 2015, as compared to net income and EPS of $175.7 million and $3.13, respectively, in fiscal 2014. Its non-GAAP adjusted net income and EPS rose 8.8% and 8.4% YoY to $224.5 million and $3.98, respectively.

Meanwhile, Sirona Dental Systems’ cash and cash equivalents and inventories rose by 35.3% and 4.9%, respectively, in fiscal 2015. The company’s current ratio rose to 3.0, and its debt-to-equity ratio fell to 0.41 in fiscal 2015, as compared to its current ratio and debt-to-equity ratio of 2.9 and 0.43, respectively, in fiscal 2014.

Latest articles

The total refiners capacity in the US is around 18.8 million barrels per calendar day. The refinery utilization rate in 2018 was 93%.

Today's Snap earnings (SNAP) are a textbook example of how irrational, or at least unpredictable, market reactions can be.

On October 15, Aphria reported its Q1 earnings. Although Aphria's revenue came in lower than expected, its EBITDA and EPS beat analysts’ expectations.

Back-to-back dismal quarterly performance and a downbeat outlook have kept analysts increasingly cautious about FedEx's (FDX) growth prospects.

Texas Instruments (TXN) reported disappointing Q3 earnings and guidance. Its revenue fell 11.5% YoY to $3.77 billion, missing the estimate by 1.3%.

On October 22, Sprint announced that its True Mobile 5G service covers 16 million people in nine cities. That day, Sprint fell 1.1% and closed at $6.35.