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]

Financial Data and Key Metrics Changes - In Q1 2025, the company's revenue was $879 million, representing a decline of 7.7% year-over-year. Organic sales decreased by 4.4%, impacted by a negative 4% BiTE effect [23][24]. - Adjusted EBITDA margins expanded by 220 basis points, benefiting from lower operating expenses and transformational savings [25]. - Adjusted EPS for the quarter was $0.43, up 3.7% from the prior year, primarily due to higher adjusted EBITDA margins and a lower share count [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. [26]. - Orthodontic and Implant Solutions segment experienced a significant organic sales decline of 17.7%, largely due to a negative BiTE impact and a loss of a DSO customer in the U.S. [27]. - Connected Technology Solutions segment had a slight organic sales decline of 0.5%, primarily due to CADCAM declines in the U.S., although imaging performance grew across all regions [28]. Market Data and Key Metrics Changes - U.S. organic sales declined by 14.9%, primarily due to a negative 9.8% impact from BiTE, while imaging growth was noted [30]. - Europe saw organic sales increase by 1.1%, driven by strong performance in Germany, which posted growth for the second consecutive quarter [33]. - The Rest of World segment experienced organic sales growth of 3.1%, with notable growth in imaging and WellSpec in China [34]. Company Strategy and Development Direction - The company is focused on driving reliable and sustainable performance, emphasizing customer-centric product innovation and operational efficiency [7][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 and experience through revamped websites and a new e-commerce platform [19][20]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by global trade situations and tariffs but expressed confidence in the company's ability to navigate these risks [6]. - The outlook for 2025 remains unchanged for organic sales and adjusted EPS, with reported sales revised to reflect foreign currency changes [12][35]. - Management noted stable patient volume and procedure utilization, despite some concerns among U.S. dentists regarding economic conditions [11]. Other Important Information - The company is actively managing its balance sheet and has taken steps to strengthen its position, including entering into a bridge loan agreement [25]. - 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 a $0.10 impact, with an annualized exposure of about $50 million [47][48]. Question: Update on the CFO search? - Progress is being made with several candidates in the late phases of the process [50]. Question: Insights on the orthodontics side? - Management noted the need to reengage with the orthodontist community and improve user experience with SureSmile [56]. Question: Context behind EBIT margin? - The improvement in Q1 EBIT margin is seen as a reasonable run rate for the rest of the year, with a focus on judicious SG&A management [62]. Question: Cash flow and CapEx expectations? - CapEx is expected to improve as ERP projects roll off, leading to better free cash flow [107].

Financial Performance - Dentsply Sirona reported a net income of $19 million for the three months ended March 31, 2025, compared to $17 million for the same period in 2024, reflecting a growth of approximately 11.76%[13] - Total comprehensive income for the first quarter of 2025 was $90 million, significantly up from a loss of $13 million in Q1 2024[13] - Net income for Q1 2025 was $19 million, an increase from $17 million in Q1 2024, representing a growth of approximately 11.76%[18] - Total net sales for Q1 2025 were $879 million, down from $953 million in Q1 2024, reflecting a decrease of about 7.77%[26] - Net loss attributable to Dentsply Sirona was $20 million, with diluted earnings per share of $0.10, an increase from $0.09 in the previous year[166] Cash and Liquidity - Cash and cash equivalents increased to $398 million as of March 31, 2025, up from $272 million at the end of 2024, representing a growth of 46.4%[15] - Cash provided by operating activities was $7 million, a decrease of $18 million compared to $25 million in the same period of 2024[172] - Cash used in investing activities decreased to $17 million from $43 million in the prior year, primarily due to lower capital expenditures of $15 million[174] - The Company had $584 million of borrowings available under lines of credit as of March 31, 2025, including a $700 million multi-currency credit facility expiring in May 2028[178] Assets and Liabilities - Total assets rose to $6,050 million at the end of Q1 2025, compared to $5,753 million at the end of 2024, indicating an increase of 5.2%[15] - Total liabilities increased to $4,040 million as of March 31, 2025, compared to $3,810 million at the end of 2024, marking a rise of 6.03%[15] - The company’s equity attributable to Dentsply Sirona was $2,010 million at the end of Q1 2025, up from $1,942 million at the end of 2024, reflecting a growth of 3.5%[15] - Total current liabilities increased to $1,793 million from $1,589 million, reflecting a rise of 12.8%[15] Sales and Revenue Segments - Equipment & Instruments sales increased to $134 million in Q1 2025 from $125 million in Q1 2024, a growth of 7.20%[26] - Connected Technology Solutions sales decreased to $235 million in Q1 2025 from $247 million in Q1 2024, a decline of 4.86%[26] - Orthodontics sales fell to $59 million in Q1 2025 from $98 million in Q1 2024, a significant decrease of 40.82%[26] - Organic sales decreased by 4.4% due to lower volumes in the Orthodontic and Implant Solutions segment, particularly from the suspension of the Byte aligner system and lower implant volumes[129] Expenses and Cost Management - Selling, general, and administrative expenses (SG&A) decreased by $57 million or 13.6% to $358 million, primarily due to lower headcount costs related to Byte products[150][152] - Research and development (R&D) expenses decreased by $6 million or 14.8% to $36 million, with ongoing investments in digital workflow solutions and product development[150][153] - The company expects to incur between $35 million and $50 million in non-recurring restructuring charges under the 2024 Plan, which aims for annual cost savings of $80 million to $100 million[185] Legal and Regulatory Matters - The company reached a settlement in principal for $84 million related to a class action lawsuit, expecting to receive an offsetting insurance receivable of approximately $78 million[79] - The company is involved in multiple ongoing securities litigations, including a consolidated case with lead plaintiffs appointed on February 21, 2025[88] - The IRS is examining the company's federal income tax returns for 2015 and 2016, proposing an adjustment that could result in additional federal income taxes on a $451 million distribution[97] Market and Economic Conditions - The company anticipates continued macroeconomic challenges, particularly in Germany, which represented 11% of sales for the three months ended March 31, 2025[115] - The U.S. government has implemented a baseline 10% tariff on foreign goods, which may impact the company's supply chain and costs[116] - The company is focusing on strategic procurement initiatives and cost-containment measures to mitigate inflationary pressures and competitive challenges[117] Future Outlook - The company expects to recognize most of the remaining deferred revenue in net sales within the next twelve months, indicating a positive outlook for future revenue recognition[28] - The Company is currently evaluating the impact of ASU No. 2024-03 on its consolidated financial statements, which requires disaggregated disclosure of income statement expenses effective after December 15, 2026[22] - The Company is assessing the implications of ASU No. 2024-04 regarding the accounting for the settlement of a debt instrument as an induced conversion, effective after December 15, 2025[23]

Company Performance - Dentsply International reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and showing a slight increase from $0.42 per share a year ago, resulting in an earnings surprise of 48.28% [1] - The company posted revenues of $879 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.22%, although this represents a decline from year-ago revenues of $953 million [2] - Over the last four quarters, Dentsply has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Outlook - Dentsply shares have declined approximately 27.9% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $911.58 million, and for the current fiscal year, it is $1.79 on revenues of $3.56 billion [7] - The estimate revisions trend for Dentsply is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Dental Supplies industry, to which Dentsply belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Dentsply Sirona Reports First Quarter 2025 Results Charlotte, N.C., May 8, 2025 - DENTSPLY SIRONA Inc. ("Dentsply Sirona" or the "Company") (Nasdaq: XRAY) today announced its financial results for the first quarter of 2025. First quarter net sales of $879 million decreased (7.7%) (organic sales decreased (4.4%)) compared to the first quarter of 2024. Foreign currency changes negatively impacted first quarter 2025 net sales by approximately ($30) million. Net income was $20 million, or $0.10 per share, compa ...

Financial Performance - Q1 2025 reported sales decreased by (7.7%) to $879 million compared to $953 million in Q1 2024 [17, 18] - Q1 2025 organic sales decreased by (4.4%) driven by an expected (4.0%) Byte impact [7] - Q1 2025 adjusted EBITDA margin expanded by 220 bps to 19.0% compared to 16.8% in Q1 2024 [7, 19] - Q1 2025 adjusted EPS increased by 3.7% to $0.43 compared to $0.42 in Q1 2024 [21, 22] - Q1 2025 operating cash flow decreased by (72%) to $7 million compared to $25 million in Q1 2024 [23, 24] Segment Performance - Essential Dental Solutions (EDS) reported a sales decrease of (2.7%), but organic sales increased by 0.4% to $353 million [26] - Orthodontic and Implant Solutions (OIS) reported a sales decrease of (20.0%), with organic sales down (17.7%) to $217 million, including a ~$40 million Byte impact [26] - Connected Technology Solutions (CTS) reported a sales decrease of (4.7%), with organic sales down (0.5%) to $235 million [26] - Wellspect Healthcare reported a sales increase of 3.4%, with organic sales up 8.0% to $74 million [26] Regional Performance - U S net sales decreased, with organic sales down (14.9%) due to a Byte impact of approximately ($40M) [28, 29] - Europe net sales decreased, with organic sales up 1.1% [28] - Rest of World net sales decreased, with organic sales up 3.1% [28] 2025 Outlook - The company maintains its FY25 outlook for organic sales at (4.0%) to (2.0%) [7, 30] - The company increases its FY25 outlook for reported sales to $3.60 billion - $3.70 billion due to F/X changes [7, 30] - The company maintains its FY25 outlook for adjusted EPS at $1.80 - $2.00 [7, 30]

Net sales of $879 million decreased (7.7%), organic sales decreased (4.4%) including a (4.0%) Byte sales impactGAAP gross margin of 53.0%, GAAP net income of $20 million or $0.10 per shareAdjusted gross margin of 56.3%, adjusted EBITDA margin of 19.0%, adjusted EPS of $0.43Maintaining FY25 outlook for organic sales and adjusted EPS; increasing reported sales due to F/X changes CHARLOTTE, N.C., May 08, 2025 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. ("Dentsply Sirona" or the "Company") (Nasdaq: XRAY) today ann ...

Core Viewpoint - Dentsply International (XRAY) is expected to report a significant decline in quarterly earnings and revenues, with earnings per share projected at $0.29, a 31% decrease year-over-year, and revenues forecasted at $851.55 million, reflecting a 10.7% decline compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 1.5% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Key Metrics Projections - Analysts project 'Net sales- Connected Technology Solutions' to reach $233.14 million, a year-over-year decrease of 5.6% [5] - 'Net sales- Wellspect Healthcare' is expected to be $74.82 million, indicating a 5.4% increase from the same quarter last year [5] - 'Net sales- Essential Dental Solutions' is forecasted at $352.85 million, reflecting a 3.1% decline year-over-year [5] - 'Net sales- Orthodontic and Implant Solutions' is estimated to be $193.98 million, a significant decrease of 28.4% from the previous year [6] - 'Revenues- Rest of World' is projected at $190.83 million, down 13.7% year-over-year [6] - 'Revenues- Europe' is expected to be $356.44 million, indicating a 5.2% decline from the year-ago quarter [6] Stock Performance - Over the past month, Dentsply shares have returned +5.6%, underperforming the Zacks S&P 500 composite, which has seen a +10.6% change [7] - Currently, Dentsply carries a Zacks Rank 4 (Sell), suggesting potential underperformance in the near future [7]