Dentsply Sirona Stock Sinks On Missed Expectations, Lowered 2025 Guidance; CEO Unveils Return-To-Growth Plan

Core Insights - Dentsply Sirona Inc. reported weaker-than-expected third-quarter earnings and lowered guidance, leading to a decline in stock price [1][7] Financial Performance - Adjusted earnings for the third quarter were 37 cents, down from 50 cents a year ago, but above the consensus estimate of 45 cents [1] - Sales totaled $904 million, a decrease of 5% year over year, yet surpassing the consensus of $896.71 million [2] - Adjusted EBITDA margin improved by 50 basis points to 18.4%, driven by reduced operating expenses, although this was partially offset by lower sales and tariff impacts [2] Segment Performance - Revenues from Connected Technology Solutions fell by 3.9% to $259 million due to lower volumes [2] - Orthodontic and Implant Solutions sales dropped 15% to $205 million, impacted by approximately $30 million from Byte and lower implant volumes in the U.S. and China [3] Strategic Initiatives - The company is implementing a "Return-to-Growth" strategy aimed at delivering sustained, profitable growth over the next 24 months [4] - The board is taking decisive actions to improve performance, as stated by the president and CEO [4] Management Changes - CFO Matt Garth has left the company, with Leslie Varon serving as interim finance chief while a successor is sought [5] Guidance - Fiscal 2025 adjusted earnings guidance has been lowered from $1.80-$2 per share to $1.60, compared to the consensus of $1.88 [6] - The company reaffirmed its 2025 sales guidance of $3.6 billion-$3.7 billion, aligning closely with the consensus of $3.65 billion [6] Market Position - Dentsply Sirona has decided to retain Wellspect as a subsidiary, which focuses on bladder and bowel care products, positioned in a $2 billion addressable market [6][7]