DENTSPLY SIRONA(XRAY) ZACKS·2025-02-27 16:31Core Insights - DENTSPLY SIRONA Inc. reported disappointing fourth-quarter 2024 results, with adjusted EPS of 26 cents, missing the consensus estimate by 39.5% and reflecting a 40.9% year-over-year decline [1] - The company also reported a GAAP loss of $2.16 per share compared to a profit of 32 cents in the same quarter last year [1] Revenue Details - Total revenues for the fourth quarter were $905 million, falling short of the consensus estimate by 1.6% and down 10.6% year-over-year [2] - The decline in revenue was attributed to a 6% impact from Byte sales, with organic revenue also decreasing by 10.7% [2] Full-Year Results - For the full year 2024, total sales reached $3.79 billion, a decrease of 4.3% year-over-year [3] - Adjusted EPS for 2024 was $1.67, down 8.8% compared to 2023 [3] Business Segments - The company operates under four segments: Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions, and Wellspect Healthcare [4][5] - Connected Technology Solutions reported revenues of $293 million, down 8.3% year-over-year [6] - Orthodontic and Implant Solutions saw sales of $185 million, a decline of 28.6% year-over-year, impacted by $62 million from Byte sales [7] - Essential Dental Solutions generated $346 million in sales, down 3.5% year-over-year, affected by order timing in the U.S. [8] - Wellspect Healthcare reported sales of $81 million, an increase of 8.6% year-over-year, driven by product innovation [9] Geographic Revenue Performance - U.S. revenues decreased 29.9% year-over-year organically to $259 million [10] - Revenues from the Rest of the World decreased 2% organically to $238 million [10] - European revenues improved 1.8% organically year-over-year to $408 million [10] Margin Analysis - Adjusted gross profit for the quarter was $477 million, down 14.5% year-over-year, with an adjusted gross margin of 52.7%, contracting 240 basis points [11] - Adjusted operating income was $96 million, down 32.9% from the previous year, with an adjusted operating margin of 10.6%, contracting 350 basis points [12] Financial Update - The company ended the fourth quarter with cash and cash equivalents of $272 million, down from $296 million at the end of the third quarter [13] - Cumulative net cash provided by operating activities totaled $461 million, compared to $377 million in the prior year [13] 2025 Guidance - DENTSPLY SIRONA revised its 2025 guidance, expecting net sales between $3.50 billion and $3.60 billion, reflecting a 4-2% decline on an organic basis [14] - The company anticipates adjusted EPS in the range of $1.80 to $2.00, with the consensus estimate at $1.90 [14] Market Reaction - The company’s shares rose 1.1% in pre-market trading despite the disappointing results, although the stock has declined 23.9% over the past six months [15]