Core Investment Strategy - Value investing is highlighted as a reliable strategy during market volatility, allowing investors to purchase stocks at discounted prices when others sell [1][2] Value Investment Drawbacks - The concept of "value traps" is introduced, where stocks may underperform due to persistent issues rather than temporary problems [3] - Common metrics for value investing include dividend yield, P/E, and P/B ratios, which help identify discounted stocks [3] Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is emphasized as a crucial metric for assessing a stock's intrinsic value [4][5] - A low PEG ratio is preferred, but it has limitations, such as not accounting for changing growth rates over time [5] Screening Criteria for Value Stocks - Effective screening criteria for value stocks include: - PEG Ratio less than industry median - P/E Ratio less than industry median - Zacks Rank 1 (Strong Buy) or 2 (Buy) - Market Capitalization greater than $1 billion - Average 20-Day Volume greater than 50,000 - Percentage Change in F1 Earnings Estimate Revisions greater than 5% - Value Score of less than or equal to B [6] Selected Stocks - Urban Outfitters (URBN) is a lifestyle retailer with a Zacks Rank 1 and a five-year historical growth rate of 20% [9][8] - Dentsply Sirona (XRAY) is a leader in dental products with a Zacks Rank 2 and a long-term expected growth rate of 7.4% [10][11] - LATAM Airlines (LTM) offers extensive air transportation services with a Zacks Rank 1 and a five-year expected growth rate of 14.8% [11][12] - Exelixis (EXEL) focuses on cancer therapies with a long-term expected earnings growth rate of 21% and a Zacks Rank of 2 [12][13]

Core Viewpoint - Dentsply Sirona has appointed Matthew E. Garth as the new Executive Vice President and Chief Financial Officer, effective May 30, 2025, bringing extensive financial management experience to the company [1][3]. Group 1: Appointment Details - Matthew E. Garth has nearly 30 years of financial management expertise, previously serving as CFO and Chief Administrative Officer at The Scotts Miracle-Gro Company [2][4]. - Garth's appointment comes at a critical time for Dentsply Sirona as the company undergoes a transformational journey [3]. Group 2: Executive Background - Prior to his role at ScottsMiracle-Gro, Garth held senior financial positions at Minerals Technologies Inc. and Alcoa Corporation, where he was CFO of two multi-billion-dollar business units [5]. - Garth has a Bachelor of Science in Accounting from the University of Delaware and an MBA from Columbia University [6]. Group 3: Company Overview - Dentsply Sirona is the largest diversified manufacturer of professional dental products and technologies, with a history of over a century in the dental industry [7]. - The company develops and markets a comprehensive range of dental and oral health products, aiming to advance patient care and improve dental services [7].

Summary of Dentsply Sirona Conference Call Company Overview - Dentsply Sirona is a leading company in the dental market, with a global reach and significant international market presence [1] Key Financial Performance - Q1 2025 results exceeded guidance, with revenue down mid-single digits year-over-year primarily due to Byte [2][4] - EPS was well above guidance, indicating strong operational performance despite revenue challenges [2] Market Landscape - The overall dental market remains stable but has not returned to pre-COVID levels after five years [4][11] - Patient traffic is stable but still below pre-COVID levels, with slight degradation in customer sentiment noted [4][5] - Germany has shown decent performance and slight improvement in the last couple of quarters [7] Customer Sentiment and Behavior - Customer sentiment in the U.S. has shifted slightly from "not concerned" to "a little bit concerned," but this is more of a numerical shift than a significant change in behavior [5][9] - No significant changes in footfall or purchase intent reported by customers [10] Challenges in the Dental Market - Awareness around oral health and sensitivity to pricing are ongoing challenges affecting the dental market [12] - High interest rates have constrained capital equipment investments, particularly impacting the CTS (Capital Equipment) division [12][16] Division Performance and Growth Strategies - **CTS and Implants/Prosthetics**: Both divisions are expected to decline in 2025, accounting for nearly 50% of revenue. The company is focused on improving customer sentiment and investing in efficiency [14][16] - **DS Core Platform**: Significant investments have been made in the DS Core platform, with a 14% increase in users and a 25% increase in connected devices quarter-over-quarter [18][19] - **Implants**: The importance of the sales force in the implant community has been underestimated, and efforts are being made to improve sales rep training and customer engagement [20][21] - **Orthodontics**: Growth is expected to resume as the impact of the DSO loss is lapped, with double-digit growth reported in Europe for SureSmile [30][33] Margin and Expense Management - Despite negative revenue growth, all divisions reported year-over-year margin increases due to reduced expenditures and improved operational efficiency [35][36] - OpEx was down 14% year-over-year in Q1 2025, with expectations for continued reductions in the future [39][40] Future Outlook - The company aims to return to growth, with expectations for normalized growth in 2025 and acceleration into 2026 [42][44] - Continued focus on innovation and customer engagement is seen as critical for future success [44][46] Distributor Relationships - Ongoing discussions with key distributors, including Patterson, have deepened, with positive engagement noted [50][52] - The company is working to restore relationships with key distributors in Europe and the U.S. [51] Virtual Sales Force Initiative - A virtual sales force initiative has been launched, with approximately 100 reps making 2,000 calls daily and generating meaningful engagement with accounts [58][59] - The initiative aims to create demand independently of distributors and has already resulted in sales [64] Tariff Impact - The impact of U.S.-China tariffs on Dentsply Sirona is minimal, accounting for less than a couple of percentage points of revenue [67][68] - The company is taking proactive measures to mitigate potential tariff risks, including redistributing products to U.S. distribution sites [69][70]

Group 1 - Dentsply Sirona will participate in the 2025 Stifel Jaws & Paws Conference, with management scheduled to present on May 28, 2025, at 9:45 am ET [1] - Investors can access a live audio webcast and a replay through the Dentsply Sirona website [1] Group 2 - Dentsply Sirona is the world's largest diversified manufacturer of professional dental products and technologies, with over a century of innovation [2] - The company develops, manufactures, and markets a comprehensive range of dental and oral health products, as well as other consumable medical devices [2] - Dentsply Sirona's innovative products aim to provide high-quality, effective, and connected solutions to enhance patient care and improve dental care safety [2]

Core Viewpoint - Dentsply International (XRAY) is currently viewed as a better value opportunity compared to The Cooper Companies (COO) based on various financial metrics and rankings [1]. Valuation Metrics - Dentsply International has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while The Cooper Companies has a Zacks Rank of 4 (Sell) [3]. - The forward P/E ratio for XRAY is 8.88, significantly lower than COO's forward P/E of 20.54, suggesting XRAY is undervalued [5]. - XRAY's PEG ratio is 1.20, compared to COO's PEG ratio of 2.06, indicating XRAY has a more favorable earnings growth outlook relative to its price [5]. - The P/B ratio for XRAY is 1.65, while COO's P/B ratio is 2.01, further supporting the argument that XRAY is a better value investment [6]. - Overall, XRAY has earned a Value grade of A, whereas COO has a Value grade of C, highlighting XRAY's superior valuation metrics [6]. Conclusion - Based on the solid earnings outlook and favorable valuation figures, Dentsply International is considered the superior value option compared to The Cooper Companies at this time [7].

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they ...

Core Insights - Dentsply Sirona Inc. experienced a significant stock surge of approximately 15%, marking its largest single-day increase since 2019, following the release of earnings that exceeded market expectations [1] - The company reported adjusted earnings per share of 43 cents for Q1 2025, surpassing the consensus estimate of 30 cents [1] - Net sales for the first quarter reached $879 million, exceeding the consensus of $854.75 million [1] Financial Performance - First quarter net sales decreased by 7.7% year-over-year, with organic sales declining by 4.4% compared to Q1 2024 [2] - Foreign currency fluctuations negatively impacted net sales by approximately $30 million in Q1 2025 [2] - Adjusted EBITDA increased by 4.2% to $168 million, with the EBITDA margin expanding from 16.8% to 19% [4] Strategic Outlook - The company maintains its guidance for adjusted earnings per share between $1.80 and $2.00, compared to the consensus of $1.82, considering foreign exchange changes and current tariffs [5] - Dentsply Sirona raised its fiscal 2025 sales guidance from a range of $3.50 billion-$3.60 billion to $3.60 billion-$3.70 billion, against a consensus of $3.57 billion [6] - Organic sales are projected to decline by 2.0% to 4.0%, which includes a 2% impact from Byte sales [6] Market Position - Analyst commentary suggests that despite the noise in the profit and loss statement, Dentsply Sirona shares are trading at a material discount to peers, with a valuation of 7 times the projected 2026 EPS [7] - The continued adoption of digital offerings is viewed positively, positioning Dentsply as a potential digital hub for accounts [7]

DENTSPLY SIRONA Inc. (XRAY) reported first-quarter 2025 adjusted earnings per share (EPS) of 43 cents, up by a penny year over year. The bottom line surpassed the Zacks Consensus Estimate by 48.3%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)GAAP EPS in the quarter under review was 10 cents, also up by a penny year over year.DENTSPLY SIRONA’s RevenuesRevenues grossed $879 million in the reported quarter, down 7.7% year over year. However, the metric beat the Zacks Consensus Esti ...

Core Insights - Dentsply International reported $879 million in revenue for Q1 2025, a year-over-year decline of 7.8%, with an EPS of $0.43 compared to $0.42 a year ago, indicating a positive surprise of +3.22% over the Zacks Consensus Estimate of $851.55 million and a +48.28% surprise in EPS against the consensus estimate of $0.29 [1] Financial Performance Metrics - Organic sales growth was -4.4%, better than the estimated -8.4% by analysts [4] - Revenue breakdown: - United States: $302 million vs. $305.67 million estimated [4] - Rest of World: $215 million vs. $190.83 million estimated [4] - Europe: $362 million vs. $356.44 million estimated [4] - Year-over-year revenue changes: - Rest of World: -2.7% [4] - Europe: -3.7% [4] - Net sales for Connected Technology Solutions: $235 million vs. $233.14 million estimated, a -4.9% change year-over-year [4] - Net sales for Wellspect Healthcare: $74 million vs. $74.82 million estimated, a +4.2% change year-over-year [4] - Net sales for Essential Dental Solutions: $353 million vs. $352.85 million estimated, a -3% change year-over-year [4] - Net sales for Orthodontic and Implant Solutions: $217 million vs. $193.98 million estimated, a -19.9% change year-over-year [4] Adjusted Operating Income - Adjusted Operating Income for Connected Technology Solutions: $7 million vs. $16.08 million estimated [4] - Adjusted Operating Income for Wellspect Healthcare: $26 million vs. $23.18 million estimated [4] - Adjusted Operating Income for Orthodontic and Implant Solutions: $37 million vs. $13.19 million estimated [4] - Adjusted Operating Income for Essential Dental Solutions: $135 million vs. $117.25 million estimated [4] Stock Performance - Dentsply's shares returned +0.2% over the past month, underperforming the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Financial Data and Key Metrics Changes - In Q1, the company reported revenue of $879 million, representing a decline of 7.7% year-over-year, with organic sales down 4.4% due to a negative 4% BiTE impact [23][24] - Adjusted EPS for the quarter was $0.43, up 3.7% from the prior year, driven by higher adjusted EBITDA margins and a lower share count [25] - Adjusted EBITDA margins expanded by 220 basis points, benefiting from lower operating expenses and transformational savings [25] Business Line Data and Key Metrics Changes - Essential Dental Solutions segment saw organic sales increase by 0.4%, driven by growth in Europe and the rest of the world, despite lower volumes in the U.S. [27] - Orthodontic and Implant Solutions segment experienced a significant organic sales decline of 17.7%, primarily due to the loss of a DSO customer in the U.S. and lower lab volumes globally [28] - Connected Technology Solutions segment reported a slight organic sales decline of 0.5%, largely due to CADCAM declines in the U.S., although imaging performance showed growth across all regions [29] Market Data and Key Metrics Changes - U.S. organic sales declined by 14.9%, primarily impacted by a negative 9.8% from BiTE, while imaging growth was noted [31] - Europe saw organic sales increase by 1.1%, driven by strong performance in Germany, particularly in equipment and instruments [34] - Rest of World organic sales grew by 3.1%, with growth in imaging and WellSpec in China, offset by CADCAM declines [35] Company Strategy and Development Direction - The company is focused on driving reliable and sustainable performance, emphasizing customer-centric product innovation and operational efficiency [8][10] - The strategy includes enhancing the digital ecosystem through the DS Core platform, which has gained traction with over 42,000 unique users [14] - The company aims to improve customer engagement through revamped websites and a new e-commerce platform [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating global trade challenges and has developed plans to mitigate potential impacts from tariffs [7][12] - Despite a challenging macroeconomic environment, the company maintained its outlook for organic sales and adjusted EPS for 2025, while increasing reported sales expectations due to foreign currency translation changes [12][36] - Management noted stable patient volume and procedure utilization, although U.S. dentists expressed concerns about economic conditions affecting patient footfall [11] Other Important Information - The company is actively managing its balance sheet and has taken actions to strengthen its position, including entering into a bridge loan agreement [26] - The company has completed the closure of 10 manufacturing and distribution sites as part of its supply chain optimization efforts [23] Q&A Session Summary Question: Can you expand on the tariff impact? - Management indicated that tariffs have been factored into guidance, estimating an annualized impact of approximately $50 million, with about $0.10 impact on EPS [49][50] Question: Update on CFO search? - Management reported good progress in the CFO search, with candidates in the late phases of the process [52] Question: Insights on orthodontics and SureSmile? - Management acknowledged the need to reengage with the orthodontist community and improve user experience for SureSmile [58] Question: Clarification on EBIT margin? - Management noted that Q1 EBIT margin improvements are indicative of future performance, with a focus on judicious SG&A management [62] Question: Cash flow and CapEx expectations? - Management expects CapEx to decrease as ERP projects roll off, leading to improved free cash flow [108]