- Dentsply Sirona Inc XRAY reported Q4 adjusted EPS of $0.46, down from $0.83 a year ago, beating the consensus of $0.32.
- Sales of $983 million decreased 10.9% Y/Y (organic sales decreased (2.6%), beating the consensus of $941.37 million.
- "2022 was a challenging year due to both internal and external factors. Despite these challenges, we were pleased to deliver fourth quarter financial results that exceeded the high end of our prior sales and EPS outlook ranges," said Simon Campion, CEO.
- Guidance: Dentsply Sirona sees FY23 revenues of $3.85-$3.95 billion versus the consensus of $3.82 billion.
- The company estimates adjusted EPS Of $1.80-$2.00 compared to the consensus of $1.84.
- The company expects Q1 2023 organic sales growth of approximately 1% and adjusted EBITDA margin to be more than 15%.
- Recently, Dentsply Sirona announced an organizational restructuring plan and anticipates achieving at least $200 million in annual cost savings over the next 18 months.
- The restructuring plan consists of a reduction in the global workforce of approximately 8% - 10%.
- William Blair writes that while sales and EPS have not yet returned to growth, we are encouraged by what appears to be a stabilizing organization that allows management to provide guidance it can execute on and seemingly even provide some upside, setting a floor on the stock.
- As shares are trading at 17.8x on the 2023 EPS estimate, William Blair maintains a Market Perform rating and looks for more fundamental improvements through 2023.
- The analyst expects that it could take several quarters to meaningfully take root and return the company to durable sales and EPS growth, which could be the key to sustained stock momentum.
- Price Action: XRAY shares are up 9.54% at $37.85 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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