A Look at Dentsply Sirona’s Expected Bottom Line in Q2 2018

Operational performance

Dentsply Sirona’s (XRAY) SG&A (selling, general, and administrative) expenses are expected to increase from $417.6 million in the second quarter of 2017 to $412.91 million in the second quarter. Its total operating expenses are expected to decrease 34.16% from $866.1 million in the second quarter of 2017 to $570.27 million in the second quarter.

A Look at Dentsply Sirona’s Expected Bottom Line in Q2 2018

Bottom line

Dentsply Sirona (XRAY) is expected to report net income of $92.15 million in the second quarter, compared with a net loss of $1.05 billion in the second quarter of 2017. This translates to net income of $0.38 per share in the second quarter, compared with a net loss of $4.58 per share in the second quarter of 2017.

Analysts’ recommendations

Nine of the 16 analysts covering Dentsply Sirona in July gave the stock a “buy” or higher rating. Six analysts gave it a “hold” rating, and one analyst gave Dentsply a “sell” rating. The mean rating for Dentsply is 2.19 with a target price of $58.54.

Analysts gave mean ratings of 2.67, 2.29, 2.07, and 2.55, respectively, to XRAY’s peers, Varian Medical Systems (VAR), Johnson & Johnson (JNJ), Gilead Sciences (GILD), and Bristol-Myers Squibb (BMY). Analysts gave target prices of $122.14, $143.20, $86.00, and $57.56, respectively, to VAR, JNJ, GILD, and BMY.

Price performance

So far in 2018, Dentsply stock has been trending lower. From a high of $68.47 on January 8, Dentsply corrected to $41.64 on June 6. Since then, it’s recovered to its current $47.00 level.

Currently, Dentsply trades at a forward price-to-earnings multiple of 16.91x. Its price-to-sales ratio is 2.68, and its price-to-book ratio is 1.62. Its return on assets stands at 2.88%.