DENTSPLY SIRONA (XRAY) To Post Q4 Earnings: What's In Store?

DENTSPLY SIRONA Inc. (NASDAQ:XRAY) is scheduled to release fourth-quarter 2019 results on Mar 2, before the opening bell.

In the last reported quarter, the company delivered a positive earnings surprise of 14%. Further, it has a trailing four-quarter positive surprise of 14.2%, on average.

Q4 Estimates

For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $1.09 billion, indicating an improvement of 2.7% from the year-ago quarter. The consensus estimate for the bottom line is pegged at 74 cents, suggesting growth of 27.6% from the year-ago reported figure.

Factors to Influence Q4

DENTSPLY SIRONA’s growth strategy is focused on product innovation, and research and development (R&D) focus, which is likely to have driven sales in the fourth quarter. Apart from this, solid track record of innovation and a dedicated, passionate workforce is likely to have contributed to the fourth-quarter performance.

Moreover, Technology & Equipment segment’s fourth-quarter performance is likely to reflect better-than-expected performance across all its products categories, equipment and instruments, digital, implants and health care. Additionally, the impact of prior-year dealer inventory stocking is likely to get reflected in the fourth-quarter performance.

The company’s CAD/CAM is a dental imaging platform and a major foundation in global dental markets. Product launches and innovation in this area are likely to have driven CAD/CAM sales in the to-be-reported quarter and consequently the top line in the United States.

The company is likely to have witnessed growth in emerging markets in the fourth quarter mainly fueled by strong Primescan sales.

Execution of cost saving opportunities is likely to have impacted the bottom line in 2019.

During the third quarter, DENTSPLY SIRONA introduced Primescan, CEREC 5.1 software (a performance upgrade for CEREC) and Astra Tech EV implant system. Moreover, with respect to the company’s imaging business, Schick sensor and U.S. launch of new versions of Orthophos, E, S and SL panoramic imaging lines. All of these launches are likely to have contributed to the company’s fourth-quarter performance.

However, DENTSPLY SIRONA’s significant international presence poses a threat to the company’s to-be-reported quarter. Foreign exchange is estimated to have affected 2019 revenues by $135 million.

What Our Quantitative Model Suggests

Per our proven model, 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.

Earnings ESP: DENTSPLY SIRONA has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: DENTSPLY SIRONA carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Worth a Look

Here are a few medical stocks worth considering with the right combination of elements to beat on earnings this reporting cycle.

Baxter International Inc. (NYSE:BAX) has a Zacks Rank #3 and an Earnings ESP of +0.19%.

HealthEquity, Inc. (NASDAQ:HQY) has a Zacks Rank of #3 and an Earnings ESP of +27.27%.

Perrigo Company plc (NYSE:PRGO) is Zacks #2 Ranked and has an Earnings ESP of +1.98%.

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