DENTSPLY (XRAY) Q3 Earnings: Is Disappointment In Store?
Zacks Investment Research | Nov 02, 2016 06:02AM ET
DENTSPLY Sirona Inc. (NASDAQ:XRAY) is expected to report third-quarter 2016 results on Nov 4. Last quarter, the company reported earnings of 76 cents per share, which beat the Zacks Consensus Estimate by 6 cents.
Notably, the company’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 5.71%.
Let's see how things are shaping up for this quarter.
Factors at Play
We believe the DENTSPLY-Sirona combined entity will benefit from revenue and cost synergies in 2016 and beyond. Moreover, a gradual recovery in the U.S. market should benefit DENTSPLY. Also, emerging markets provide significant opportunities for the company as these areas are vastly untapped with low dental products’ penetration.
However, integration will be a risk in the near term. Moreover, unfavorable foreign exchange rate volatility will continue to hurt DENTSPLY’s results in the immediate future. Additionally, higher capital expenditure on product development, along with persistent decline in sales, is expected to keep margins under pressure.
Overall, the company’s activities during the July–September period were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the third quarter deteriorated to 63 cents from 68 cents per share over the last 90 days.
the complete list of today’s Zacks #1 Rank stocks here .
Bard C R Inc. (NYSE:BCR) has an Earnings ESP of +0.37% and a Zacks Rank #2.
Invuity, Inc. (NASDAQ:IVTY) has an Earnings ESP of +1.61% and a Zacks Rank #2.
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