Envista(US:NVST) ZACKSยท2025-05-06 12:10Core Viewpoint - Envista Holdings Corporation reported a decline in adjusted earnings per share (EPS) for Q1 2025, but the results exceeded market expectations, indicating resilience despite challenges in certain segments [1][8]. Financial Performance - Adjusted EPS for Q1 2025 was 24 cents, down 7.7% year over year, but surpassed the Zacks Consensus Estimate by 20% [1]. - GAAP EPS was 10 cents compared to 14 cents in the prior-year period [1]. - Revenues totaled $616.9 million, a decrease of 1.1% year over year, yet exceeded the Zacks Consensus Estimate by 1.5% [3]. - Gross profit fell 5.7% year over year to $336 million, with a gross margin contraction of 267 basis points to 54.5% due to a 5.1% rise in cost of sales [4]. Segment Performance - Specialty Products & Technologies segment revenues were $400.3 million, down 2.1% year over year [3]. - Equipment & Consumables segment revenues increased by 0.8% year over year to $216.6 million [3]. - The company experienced growth in consumables, premium implants, and orthodontics (outside China) businesses [8]. Operational Metrics - Selling, general and administrative expenses decreased by 4.6% year over year to $271.7 million [4]. - Research and development expenses rose by 8.6% to $25.3 million [4]. - Operating profit was $39 million, down 18.9% year over year, with an operating margin contraction of 139 basis points to 6.3% [4]. Cash and Debt Position - Cash and cash equivalents at the end of Q1 2025 were $1.08 billion, slightly up from $1.07 billion at the end of Q4 2024 [5]. - Long-term debt increased to $1.30 billion from $1.28 billion in the previous quarter [5]. - Year-to-date net cash provided by operating activities was $0.3 million, a significant decrease from $40.3 million a year ago [5]. Future Guidance - The company reaffirmed its 2025 guidance, expecting core sales growth of 1-3% and adjusted EBITDA margins of approximately 14% [6]. - The Zacks Consensus Estimate for 2025 revenues is $2.53 billion, indicating a 0.8% increase from the previous year [6]. - Adjusted EPS is anticipated to be in the range of $0.95-$1.05, with the Zacks Consensus Estimate at $0.97 [7].