Dentsply Sirona's Q4 Falls Short Of Expectations, FY22 Sales Outlook Lags Street View

Dentsply Sirona Inc's XRAY Q4 FY21 sales increased 0.6% Y/Y to $1.09 billion, missing the consensus of $1.13 billion.

• Adjusted EPS decreased to $0.76 from $0.87 a year ago and below the consensus of $0.79.
• "Our 2021 performance reflects the resilience of the dental market, the strength of our global portfolio, and our team's ability to execute well in an environment still impacted by the pandemic. We delivered strong results with organic sales growth of nearly 25%, double-digit EPS growth, and solid cash flow generation," said Don Casey, CEO.
• Technologies & Equipment sales increased 6.8% (+6.5% organic) to $676 million, primarily driven by CAD/CAM, Implants, and orthodontics partially offset by supply chain constraints.
• Consumables sales declined 8.3% to $412 million, and organic sales fell 4.6%, driven by a tough comparison to the prior year due to the COVID-19 rebound and the timing of purchases ahead of the annual price increase, partially offset by increased pricing.
• Operating cash flow in the fourth quarter of 2021 reached $222 million.
• Guidance: For FY22, Dentsply Sirona expects organic sales growth of 4% to 5%, with sales of $4.3 billion - $4.4 billion, below the consensus of $4.48 billion.
• Adjusted operating income margin is expected to be greater than 21%, with a target of 22% by Q4 FY22.
• The company forecasts adjusted EPS of $3.05 - $3.25, up 6% -13% Y/Y, compared to the consensus of $3.19.
• Price Action: XRAY shares are down 7.68% at $54.18 during the market session on the last check Monday.