Why Is Envista (NVST) Down 18.2% Since Last Earnings Report?

Core Insights - Envista's shares have declined approximately 18.2% since the last earnings report, underperforming the S&P 500 [1] - The company reported a fourth-quarter adjusted EPS of 24 cents, a 17.2% decrease year-over-year, but exceeded the Zacks Consensus Estimate by 4.3% [2] - Full-year adjusted EPS was 73 cents, reflecting a 52.3% decrease from the previous year [3] Revenue Performance - Fourth-quarter revenues reached $652.9 million, a 1.1% increase year-over-year, surpassing the Zacks Consensus Estimate by the same percentage [4] - Full-year revenues totaled $2.51 billion, down 2.2% from the previous year [4] - Specialty Products & Technologies segment revenues were $410.9 million, down 1.2% year-over-year, while Equipment & Consumables segment revenues increased by 5.3% to $242 million [5] Operational Metrics - Gross profit for the quarter rose 10.8% year-over-year to $372.5 million, with a gross margin expansion of 498 basis points to 57.1% due to a 9.4% decline in cost of sales [6] - Selling, general and administrative expenses increased by 15.2% to $299.7 million, while research and development expenses rose 32.2% to $26.7 million [6] - Operating profit fell 17.4% year-over-year to $46.1 million, with an operating margin contraction of 158 basis points to 7.1% [6] Financial Position - At the end of Q4 2024, cash and cash equivalents stood at $1.07 billion, up from $940 million at the end of 2023 [7] - Long-term debt decreased to $1.28 billion from $1.40 billion year-over-year [7] - Year-to-date net cash provided by operating activities was $336.5 million, compared to $275.7 million a year ago [7] Future Guidance - For 2025, Envista anticipates core sales growth between 1% and 3% and adjusted EBITDA margins around 14% [8] - The Zacks Consensus Estimate for 2025 revenues is $2.56 billion, indicating a 2.1% increase from the previous year [9] - Adjusted EPS for 2025 is expected to be in the range of $0.95 to $1.05, with the Zacks Consensus Estimate at $1.10 [9] Estimate Trends - Recent estimates have shown a downward trend, with the consensus estimate shifting down by 16.52% [10] - Envista currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [12] Industry Comparison - Envista operates within the Zacks Medical - Products industry, where competitor Abbott has seen a 5.4% gain over the past month [13] - Abbott reported revenues of $10.97 billion for the last quarter, reflecting a year-over-year increase of 7.2% [13]