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Dentsply Sirona’s 2Q17 Results: Key Highlights

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Aug. 16 2017, Updated 6:37 a.m. ET

2Q17 takeaways

Dentsply Sirona (XRAY) reported its 2Q17 earnings on August 9, 2017. Dentsply and Sirona merged in February 2016 and created Dentsply Sirona, the world’s largest dental equipment manufacturer and technology developer. For a company overview, please read An Investor’s Guide to Dental Manufacturer Dentsply Sirona.

Dentsply Sirona registered adjusted diluted non-GAAP[1. generally accepted accounting principles] EPS (earnings per share) of $0.65 in 2Q17. Its GAAP EPS reported a loss of $4.58 compared to its $0.44 GAAP EPS registered in 2Q16.

The company’s non-cash impairment charges of $1.2 billion drove its GAAP EPS loss of $5.05. As we can see in the chart above, Dentsply Sirona’s adjusted diluted EPS in 2Q17 equaled the Wall Street analysts’ consensus estimate of $0.65.

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Revenue estimates

In 2Q17, Dentsply Sirona earned revenues of ~$992.7 million, registering a decline of ~2.9% on a YoY (year-over-year) basis. As we can see in the chart above, Dentsply Sirona’s 1Q17 revenues yet again failed to meet Wall Street analysts’ consensus estimates. Notably, the company did not meet its revenue estimates for the last four quarters as well.

Dentsply’s adjusted revenues fell ~1% on a comparable currency-neutral basis. Net acquisitions had a positive impact of 2.6% on the company’s sales. On excluding the impact of net acquisitions, Dentsply reported an organic sales decline of ~3.6%.

Its Consumables and Healthcare businesses reported ~2% organic growth this quarter. However, the Technology business dragged down the company’s growth as the business segment witnessed an internal sales decline of ~10%.

Some of the major competitors of Dentsply Sirona include Align Technology (ALGN), Zimmer Biomet Holdings (ZBH), and Integra Lifesciences Holdings (IART). These companies earned revenues of ~$356.5 million, ~$2.0 billion, and $282.2 million, respectively, in their recently ended quarters.

Investors seeking diversified exposure to Dentsply Sirona can consider the PowerShares QQQ Trust, Series 1 ETF (QQQ). Dentsply Sirona accounts for ~0.21% of QQQ’s total holdings.

In the next article, we’ll discuss the company’s Dental and Healthcare Consumables business performance in 2Q17.

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