Financial Performance - Q3 2025 sales reached $670 million, representing a core sales growth of 9.4% compared to Q3 2024[4] - Adjusted EBITDA for Q3 2025 was $97 million, reflecting a 77% year-on-year increase, with an adjusted EBITDA margin of 14.5% (+540 bps year-on-year)[4] - The company reported a GAAP net loss of $30 million for Q3 2025, attributed to a tax charge from restructuring intercompany loans[4] - Adjusted diluted earnings per share (EPS) for Q3 2025 was $0.32, a 167% increase year-on-year[4] - Operating cash flow for Q3 2025 was $79 million, while free cash flow was $68 million, compared to $71 million and $63 million in Q3 2024, respectively[5] - Net income for the nine months ended September 26, 2025, was $14.1 million, a significant recovery from a net loss of $1,119.8 million in the same period last year[19] - Adjusted net income for the nine months ended September 26, 2025, was $138.9 million, compared to $85.4 million for the same period last year, indicating a growth of 62.6%[21] - Adjusted diluted EPS guidance for 2025 is now set at $1.10 to $1.15, an increase from the prior guidance of $1.05 to $1.15[7] Cash Flow and Share Repurchase - The company repurchased 2.1 million shares for approximately $41 million during the quarter, with $108 million remaining under its stock repurchase program[6] - Free cash flow for the nine months ended September 26, 2025, was $139.2 million, down from $178.9 million in the prior year, a decrease of 22.2%[21] - Free Cash Flow (FCF) for the three months ended September 26, 2025, was $67.9 million, compared to $63.3 million for the same period in 2024, representing a 10.0% increase[31] Sales and Growth - For full year 2025, the company updated its core sales growth guidance to approximately 4%, up from the previous range of 3% to 4%[7] - All major businesses delivered positive growth, supported by several new product launches[4] - Specialty Products & Technologies segment sales for the three months ended September 26, 2025, were $431.5 million, up from $381.7 million in the same period last year, an increase of 13.1%[23] - Total sales growth for the three months ended September 26, 2025, was 11.5%, with core sales growth contributing 9.4%[30] Assets and Liabilities - Total assets increased to $5,642.5 million as of September 26, 2025, up from $5,350.5 million at December 31, 2024, reflecting a growth of approximately 5.5%[17] - Total liabilities decreased to $2,554.3 million as of September 26, 2025, from $2,516.0 million at December 31, 2024, a reduction of approximately 1.5%[17] Operating Performance - Gross profit for the three months ended September 26, 2025, was $370.2 million, compared to $317.3 million for the same period last year, representing a year-over-year increase of 16.7%[21] - Adjusted Operating Profit for the three months ended September 26, 2025, was $85.6 million, up from $43.8 million for the same period in 2024, representing a 95.7% increase[25] - Adjusted Net Income for the three months ended September 26, 2025, was $53.7 million, compared to $21.1 million for the same period in 2024, reflecting a 153.1% increase[26] - The operating margin for the total segment improved to 8.6% for the three months ended September 26, 2025, compared to 3.5% in the same period last year[23] Non-GAAP Measures and Adjustments - Adjusted EBITDA is used as a supplemental measure for assessing operating performance, excluding interest, taxes, depreciation, amortization, and unusual losses or gains[35] - Free Cash Flow (FCF) is utilized to evaluate the company's ability to generate cash for investments and growth, although it does not account for debt service requirements[36] - The company excludes amortization of acquisition-related intangible assets to facilitate consistent comparisons of operating results over time[37] - Core sales exclude the effects of acquisitions, divested product lines, discontinued products, and currency translation to provide a clearer view of ongoing operations[37] - Adjusted Net Income and Adjusted Diluted Earnings Per Share are calculated after excluding items that may obscure underlying business trends[37] - Management uses non-GAAP measures to evaluate operating and financial performance, highlighting the limitations of Free Cash Flow[36] - The company aims to provide investors with insights into long-term profitability trends compared to peers and historical performance[35]

Core Insights - Envista Holdings Corporation released its 2024 Sustainability Report, emphasizing its commitment to sustainable and responsible business practices aimed at improving lives through partnerships with dental professionals [1][2]. Sustainability Initiatives - The report highlights key focus areas including expanding access to high-quality dental care, supporting colleagues and communities, environmental stewardship, and maintaining a strong ethical foundation [2][4]. - Envista donated $1.9 million in goods and services to enhance access to oral care health and education for underserved communities through the Envista Smile Project [7]. - The company completed its inaugural Scope 3 GHG emissions inventory to better manage its environmental footprint [7]. Performance Metrics - Envista achieved a 13% reduction in its safety incident rate, indicating improved workplace safety [7]. - The report reflects the collective efforts of teams across the organization, showcasing the company's dedication to creating lasting value for stakeholders [4]. Company Overview - Envista is a global family of over 30 trusted dental brands, including Nobel Biocare, Ormco, DEXIS, and Kerr, focused on delivering innovative dental products and solutions [5]. - The company is positioned as one of the largest global dental products companies, with significant market presence in attractive segments of the dental industry [5].

Core Insights - Envista (NVST) has a strong history of beating earnings estimates and is well-positioned for continued success in upcoming reports [1][2] Earnings Performance - Envista has surpassed earnings estimates by an average of 14.17% over the last two quarters [2] - In the most recent quarter, Envista reported earnings of $0.26 per share against an expectation of $0.24, resulting in a surprise of 8.33% [2] - For the previous quarter, the consensus estimate was $0.20 per share, while the actual earnings were $0.24, leading to a surprise of 20.00% [2] Earnings Estimates and Predictions - Recent estimates for Envista have been increasing, indicating a positive outlook for future earnings [5] - The Zacks Earnings ESP for Envista is currently +1.62%, suggesting analysts are optimistic about its near-term earnings potential [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high likelihood of another earnings beat [5][8] Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7]

Group 1 - Evercore ISI has added Envista (NVST) to its "Tactical Outperform" list as part of updates in the Healthcare Technology & Distribution group ahead of Q3 earnings season [1] - The firm maintains an Outperform rating on Envista shares with a price target set at $25 [1]

Core Insights - Envista Holdings Corporation will report its financial results for the third quarter of 2025 on October 30, 2025, with a conference call scheduled for 2:00 PM PT [1] - The earnings press release and related materials will be available on the "Investors" section of Envista's website prior to the conference call [2] Company Overview - Envista is a global family of over 30 trusted dental brands, including Nobel Biocare, Ormco, DEXIS, and Kerr, focused on improving lives through dental care [3] - The company offers a comprehensive portfolio that includes dental implants, orthodontics, and digital imaging technologies, addressing a wide range of clinical needs for dental professionals [3] - Envista is recognized as one of the largest global dental products companies, holding significant market positions in attractive segments of the dental products industry [3]

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1] - The Zacks Style Scores are designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score evaluates a company's financial health and future growth potential [4] - Momentum Score helps investors capitalize on price trends and earnings outlook [5] - VGM Score combines all three styles to provide a comprehensive assessment of stocks [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to facilitate portfolio building [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] Stock Highlight: Envista Holdings Corporation - Envista Holdings Corporation, established in 2018 as a subsidiary of Danaher Corporation, focuses on the dental platform [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [11] - Envista's Value Style Score is B, supported by a forward P/E ratio of 19.25, making it attractive to value investors [12] - Recent analyst revisions have positively impacted earnings estimates for fiscal 2025, with the Zacks Consensus Estimate rising by $0.09 to $1.12 per share [12] - The company has demonstrated an average earnings surprise of +16.5%, further solidifying its position as a strong investment candidate [12]

Core Insights - Envista Holdings Corp. (NVST) is positioned for robust future growth through global commercial expansion and deeper market penetration [1][4] - The company is actively assessing strategic acquisitions to complement its portfolio and enter new economic sectors [1][5] - Strong solvency is highlighted by significant cash reserves and no current debt, although currency fluctuations pose operational challenges [1][7][10] Financial Performance - Over the past year, NVST stock has gained 17.8%, outperforming the industry growth of 2.6% and the S&P 500's 19.4% [2] - The company has a market capitalization of $3.45 billion and an earnings yield of 5.3%, significantly higher than the industry's 0.2% [2] - NVST has consistently surpassed earnings estimates, achieving an average surprise of 16.50% over the last four quarters [2] Market Expansion - Envista is focusing on international market expansion, with key markets in Europe, Asia, the Middle East, and Latin America [3] - The company reported double-digit growth in emerging markets, particularly in Latin America, Indo-Pacific, and the Middle East and Africa during Q2 2025 [4][9] Strategic Acquisitions - Recent acquisitions include Carestream Dental's Intraoral Scanner business and Osteogenics Biomedical Inc., enhancing Envista's product offerings and market reach [6][9] Solvency and Financial Strength - As of Q2 2025, Envista had cash and cash equivalents of $1.11 billion and no current debt, indicating strong financial flexibility [7][9] - Long-term debt increased to $1.45 billion, with a net debt to adjusted EBITDA ratio of approximately 1X, reflecting stability [8] Currency Impact - A significant portion of Envista's sales and costs are affected by foreign exchange rates, which can impact net income [10] - In Q2 2025, unfavorable foreign exchange rates partially offset the company's operating profit [10] Earnings Estimates - The Zacks Consensus Estimate for 2025 earnings per share (EPS) remains at $1.12, with revenues projected at $2.61 billion, indicating a 4% increase from the previous year [11]

Group 1 - Rush Street Interactive (RSI) has seen a 12.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Udemy (UDMY) has experienced a 9.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Envista (NVST) has reported an 8.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] Group 2 - Dorman Products (DORM) has seen a 7.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - CF Bankshares (CFBK) has experienced a 6.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Viewpoint - Envista (NVST) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The upgrade in Zacks rating for Envista suggests an improvement in the company's underlying business, which is expected to drive the stock price higher [4]. - Over the past three months, the Zacks Consensus Estimate for Envista has increased by 7.9%, reflecting analysts' positive revisions [7]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [8][9].

Core Viewpoint - Envista (NVST) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding Envista's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is $0.27 per share, indicating a year-over-year increase of +125.0%. Over the last 30 days, five estimates have been revised upward, resulting in a 9.5% increase in the Zacks Consensus Estimate [5]. - For the full year, Envista is projected to earn $1.12 per share, representing a year-over-year change of +53.4%. Seven estimates have been raised in the past month, with no negative revisions, contributing to a favorable consensus [6]. Zacks Rank and Performance - Envista has achieved a Zacks Rank 1 (Strong Buy) due to the positive estimate revisions, which historically correlate with strong stock performance [7]. - Stocks with a Zacks Rank 1 and 2 (Buy) have shown significant outperformance compared to the S&P 500 [7]. Recent Stock Performance - Envista shares have increased by 5.5% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [8].