PresentationJeffrey JohnsonSenior Research Analyst All right. Good afternoon. Why don't we get started? My name is Jeff Johnson. I'm the senior medical technology analyst at Baird. Our next presentation this afternoon is from Dentsply Sirona, a leading manufacturer of dental consumables and equipment across the globe. With us today from Dentsply, we're happy to have CFO, Matt Garth. Matt, I think you said we can just go straight into Q&A. ...

Summary of Dentsply Sirona Conference Call Company Overview - **Company**: Dentsply Sirona (NasdaqGS: XRAY) - **Industry**: Dental consumables and equipment manufacturing Key Points and Arguments 1. **Management Changes and Focus**: New management is prioritizing the recovery of the U.S. business and reallocating resources to enhance innovation and sales force effectiveness [7][8][10] 2. **R&D Investment Increase**: R&D spending is set to increase from approximately 4% to 7%, indicating a significant opportunity for innovation and product development [7][10][12] 3. **Essential Dental Solutions (EDS)**: EDS, which constitutes about 40% of revenue, is identified as a key area for investment, particularly in general dental consumables and restorative products [10][16] 4. **Margin Improvement Strategy**: The company aims to improve operating margins by reducing SG&A expenses and focusing on value-accretive roles, with a target to bring SG&A down to around 30% [21][25] 5. **Market Growth Outlook**: The company anticipates market growth rates of 2% to 3% for EDS and mid-single digits for other segments, emphasizing the need for Dentsply Sirona to align with market growth [67][70] 6. **Competitive Positioning**: Dentsply Sirona acknowledges past share losses to competitors and emphasizes the need for innovation and resource allocation to regain competitiveness in the implant market [70][72] 7. **Customer Experience Focus**: Enhancing customer experience is a priority, with a commitment to improving relationships with distributors and partners [32][54] 8. **ERP Integration**: The company is undergoing ERP integration, which is expected to yield synergies and cost savings in the long term [60][62] 9. **Free Cash Flow Management**: The management is focused on increasing free cash flow and aims for consistent EPS growth through share repurchase programs [103] Additional Important Insights - **Leadership Philosophy**: The new leadership emphasizes a disciplined approach to decision-making and resource allocation, aiming for long-term growth rather than short-term gains [20][64] - **Ecosystem Strategy**: Dentsply Sirona is positioning itself to leverage a comprehensive suite of dental technologies, enhancing value creation for dental practices and DSOs [90][91] - **Turnaround Efforts**: The management is committed to a turnaround strategy that includes operational efficiencies and a focus on core competencies [64][70] This summary encapsulates the critical insights from the Dentsply Sirona conference call, highlighting the company's strategic direction, investment priorities, and market outlook.

PresentationErin Wilson WrightEquity Analyst Good afternoon, everyone. My name is Erin Wright, the health care services analyst at Morgan Stanley. We're happy to have with us Dentsply Sirona and the management team. We have CEO, Dan Scavilla, if I said that right, and Matt Garth, the CFO. Newly appointed management team is here. So we're really excited to have you here and give your views on the strategy and everything kind of going forward. But for more important disclosures, please see the Morgan Stanley ...

DENTSPLY SIRONA FY Conference Summary Company Overview - **Company**: DENTSPLY SIRONA (NasdaqGS: XRAY) - **Date of Conference**: September 08, 2025 Key Points and Arguments Management Changes and Strategy - New CEO Dan Scavilla and CFO Matt Garza emphasize the need for a strategic shift but acknowledge that the previous management was on the right track [2][4] - The management team aims to streamline internal processes to enhance decision-making speed, which is currently seen as a competitive disadvantage [2][3][6] Market Penetration and Business Structure - The company plans to reevaluate its market penetration strategies, focusing on direct sales and partnerships with dealers and dental service organizations (DSOs) [5][6] - There is a belief that the current commercial structure is not fully optimized, and resources need to be reallocated from support functions to R&D and field operations [6][9] Business Retention and Growth Strategy - The decision to retain a specific business segment was based on recognizing its intrinsic value and potential for future product launches, which were not reflected in initial sale offers [10][11] - The management believes that retaining this business will help fuel the overall turnaround in the dental sector [11] Long-term Growth Trajectory - The dental market has historically grown above GDP but is currently expected to align with GDP growth rates [14] - The management is focused on innovation and competitive strategies to ensure that DENTSPLY SIRONA can outperform market growth rates [15][20] Financial Projections and Challenges - For FY 2025, the company forecasts a revenue decline of 2% to 4%, citing various headwinds including ERP-related issues and market conditions [21][22] - The management is focused on stabilizing the business and demonstrating growth potential before providing detailed projections for 2026 [19][20] Margin and Cost Management - The target for fiscal 2025 is to achieve a margin of over 19%, with a focus on reallocating resources to drive growth and profitability [23][27] - The management acknowledges the need for a leaner operational structure to improve financial performance [28][30] Cash Flow and Working Capital - The company is currently over-positioned in working capital, with plans to reduce inventory levels and improve cash flow dynamics [31][34] - The management aims to generate $300 million to $400 million in annual cash flow, despite unique challenges in 2025 [31] M&A Strategy - The management plans to stabilize the business before pursuing M&A opportunities, focusing on bolt-on acquisitions that expand the total addressable market (TAM) [36][37] R&D and Innovation - There is a desire to increase R&D spending to at least 7% of sales to drive innovation and competitiveness [40] - The management is focused on modernizing software and improving product offerings to enhance customer experience [52][57] Distribution Strategy - The relationship with distributors is under evaluation, with a focus on determining the best approach for market penetration and growth [66][67] - The management is considering the balance between direct sales and distribution partnerships [66][67] Sales Force and Training - There is a commitment to invest in the sales force and improve training to enhance customer relationships and drive sales [71] Audit and Compliance - The company is cooperating with an ongoing audit in Germany, maintaining transparency and collaboration [73][74] Team Dynamics and Culture - The management has noted a strong willingness among employees to drive improvements and embrace a mindset shift necessary for the turnaround [75][76] Additional Important Insights - The management emphasizes that the turnaround is not just about product changes but also about instilling a new mindset within the organization [75] - There is a recognition of the need to modernize practices and enhance the overall customer experience to remain competitive in the dental market [46][52]

Determined that Wellspect will Deliver Greater Financial and Strategic Benefits to Stockholders as Part of the CompanyCHARLOTTE, N.C., Sept. 08, 2025 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the "Company") (Nasdaq: XRAY) today announced that the Company has completed the evaluation of strategic alternatives for its Wellspect Healthcare business (“Wellspect”), which was announced in February 2025. As a part of its review process, Dentsply Sirona considered a range of potential opportuni ...

Core Viewpoint - Investors should closely monitor DENTSPLY SIRONA Inc. (XRAY) due to significant movements in the options market, particularly the high implied volatility of the Jan 16, 2026 $2.50 Call option [1] Company Analysis - DENTSPLY is currently rated as Zacks Rank 3 (Hold) in the Medical - Dental Supplies industry, which is positioned in the bottom 24% of the Zacks Industry Rank [3] - Over the last 60 days, there has been a mixed sentiment among analysts regarding earnings estimates; two analysts have raised their estimates while five have lowered theirs, resulting in a decrease of the Zacks Consensus Estimate for the current quarter from 47 cents per share to 46 cents [3] Options Market Insights - The high implied volatility surrounding DENTSPLY shares indicates that options traders are anticipating a significant price movement, which could be linked to an upcoming event that may trigger a rally or sell-off [2][4] - Seasoned options traders often seek out options with high implied volatility to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected by expiration [4]

Core Insights - DENTSPLY SIRONA Inc. is a medtech company specializing in dental and healthcare solutions, with its core consumables (EDS) and Wellspect Healthcare segments being the primary revenue sources that provide stability [1]. Company Overview - The company operates in the dental and healthcare sectors, focusing on providing innovative solutions to enhance patient care and improve clinical outcomes [1]. Revenue Segments - The main revenue verticals for DENTSPLY SIRONA are the core consumables (EDS) and Wellspect Healthcare segments, which contribute significantly to the company's financial stability [1].

Core Insights - Dentsply International's international operations are crucial for assessing its financial resilience and growth prospects, especially in a tightly interconnected global economy [1][2][3] Revenue Performance - The company's total revenue for the quarter was $936 million, reflecting a decrease of 4.9% [4] - Europe contributed 43.2% of total revenue, amounting to $404 million, with a surprise increase of +3.62% compared to analyst expectations [5] - The Rest of World segment generated $239 million, accounting for 25.5% of total revenue, surpassing projections by +7.37% [6] Future Projections - Analysts predict total revenue of $905.49 million for the current fiscal quarter, indicating a decline of 4.8% year-over-year, with Europe and Rest of World expected to contribute 39.1% and 23.8% respectively [7] - For the full year, total revenue is anticipated to be $3.65 billion, down 3.8% from the previous year, with Europe and Rest of World expected to represent 41.4% and 24.2% of this total [8] Strategic Considerations - The reliance on international markets presents both opportunities and challenges for Dentsply, making it essential to monitor international revenue trends for future projections [9][10]

Company Overview - DENTSPLY SIRONA Inc. is a global leader in the design, development, manufacture, and marketing of dental consumables, dental laboratory products, dental specialty products, and consumable medical device products [12] - The company also provides dental technology products, including dental implants, scanning equipment, treatment software, and orthodontic appliances, as well as dental equipment such as treatment centers and imaging equipment [12] Investment Highlights - DENTSPLY SIRONA Inc. has a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong potential for investment [13] - The company is particularly appealing to growth investors, with a Growth Style Score of B and a forecasted year-over-year earnings growth of 13.8% for the current fiscal year [13] - Recent analyst activity shows a revision of earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing to $1.90 per share [13] - DENTSPLY SIRONA Inc. has an average earnings surprise of +4.2%, further enhancing its attractiveness as an investment option [13][14]

Core Insights - Dentsply International reported $936 million in revenue for Q2 2025, a year-over-year decline of 4.9%, with an EPS of $0.52 compared to $0.49 a year ago, exceeding the Zacks Consensus Estimate of $933.1 million by 0.31% and delivering an EPS surprise of 4% [1][3] Revenue Performance - Organic sales growth was -4.9%, slightly below the average estimate of -4.6% from six analysts [4] - Revenue in the United States was $293 million, compared to the average estimate of $323.26 million from three analysts [4] - Revenue from the Rest of the World was $239 million, exceeding the average estimate of $222.59 million, representing a year-over-year change of +0.8% [4] - Revenue in Europe was $404 million, surpassing the average estimate of $389.9 million, reflecting a +4.4% change year-over-year [4] Segment Performance - Net sales for Connected Technology Solutions were $243 million, below the estimated $251.55 million, marking a -4% change year-over-year [4] - Net sales for Wellspect Healthcare were $80 million, slightly below the estimate of $81.45 million, with no change year-over-year [4] - Net sales for Essential Dental Solutions were $387 million, exceeding the average estimate of $373.62 million, representing a +3.2% year-over-year change [4] - Net sales for Orthodontic and Implant Solutions were $226 million, slightly above the estimate of $225.94 million, but reflecting an -18.1% change year-over-year [4] Operating Income - Adjusted Operating Income for Connected Technology Solutions was $12 million, below the estimate of $16.97 million [4] - Adjusted Operating Income for Wellspect Healthcare was $25 million, slightly below the estimate of $26.14 million [4] - Adjusted Operating Income for Orthodontic and Implant Solutions was $45 million, significantly above the estimate of $16.63 million [4] - Adjusted Operating Income for Essential Dental Solutions was $151 million, exceeding the average estimate of $126.53 million [4] Stock Performance - Dentsply's shares have returned -17.4% over the past month, contrasting with the Zacks S&P 500 composite's +1.2% change, with a Zacks Rank 2 (Buy) indicating potential outperformance in the near term [3]