Envista (NVST) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Company Participants Jim Gustafson - VP - IRPaul Keel - CEOEric Hammes - Chief Financial OfficerJonathan Block - Managing Director Conference Call Participants Jason Bednar - Senior Research AnalystElizabeth Anderson - Senior Managing Director & Research AnalystJeffrey Johnson - Managing Director, Senior Research AnalystAllen Lutz - Senior Equity Research AnalystSteven Valiquette - MD & Senior Equity Research Analyst - Covering Health Care Techno ...

Financial Data and Key Metrics Changes - The company reported Q1 sales of $617 million, with core sales increasing by 20 basis points year over year despite a negative impact of approximately 140 basis points from currency exchange rates [12][14] - Adjusted EBITDA margin was around 12.8%, down 120 basis points from the previous year, primarily due to foreign exchange impacts [14][19] - Adjusted EPS for the quarter was $0.24, slightly above expectations but down $0.02 compared to the same quarter last year [14][22] Business Line Data and Key Metrics Changes - Specialty Products and Technologies segment saw a core revenue decline of 70 basis points year over year, while Equipment and Consumables segment increased by 170 basis points [19][21] - Consumables showed strong growth across most categories and geographies, particularly in North America [12][13] - The orthodontics business experienced growth in Spark and Brackets and Wires outside of China, despite challenges in the Chinese market [20][25] Market Data and Key Metrics Changes - The global dental market remained stable in Q1, with underlying demand similar to the second half of 2024 [9][35] - Positive growth was noted in North America, Japan, and emerging markets, while Europe remained flat [26] - Consumer confidence indices in the U.S. have deteriorated, but this has not yet impacted the company's Q1 results [10][35] Company Strategy and Development Direction - The company is focused on a value creation plan that includes growth in consumables, Nobel, and orthodontics, as well as price capture across its portfolio [25][26] - A tariff task force has been established to manage the impacts of tariffs and optimize supply chain flexibility [31][32] - The company maintains its 2025 guidance of 1% to 3% core growth and adjusted EBITDA margins of approximately 14% [11][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the dental market's long-term stability despite current macroeconomic uncertainties [27][35] - The company is navigating challenges through cost controls and operational improvements, with a focus on maintaining strong customer service levels [10][27] - Future performance is expected to benefit from the unwinding of revenue deferrals in the second half of the year [16][87] Other Important Information - The company has made progress on its $250 million share repurchase program, purchasing $19 million worth of stock in Q1 [22] - Free cash flow was an outflow of $5 million in Q1, typical for the first quarter due to timing of incentive compensation [15][21] Q&A Session Summary Question: Current tariff exposure and mitigation strategies - The company detailed its tariff exposure primarily in U.S. goods imported into China and vice versa, with ongoing efforts to shift supply chains to mitigate impacts [41][42][43] Question: April trends and volume-based dynamics - Management noted that April has started positively, with no significant shifts in procedure types observed [49][50][51] Question: Gross and net impacts from tariffs - The guidance includes current tariff activity, with confidence in mitigating impacts but acknowledging wider error bars compared to previous guidance [56][57][58] Question: Expectations for implants and product launches - The Challenger segment experienced a decline due to fewer billing days, but no change in trajectory is anticipated for the year [91][93][95] Question: Spark average selling price trends - No major change in Spark ASP was reported, with consistent pricing and value capture noted [100][101] Question: Size of the China business and inventory management - The China business represents a high single-digit percentage of total revenue, with inventory held in China and ongoing shipments incurring tariffs [105][106][107]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported sales of $617 million, with core sales increasing by 20 basis points year over year despite a negative impact from currency exchange rates of approximately 140 basis points [12][13] - Adjusted EBITDA margin was around 12.8%, a decrease of 120 basis points compared to the previous year, primarily due to foreign exchange impacts [14][20] - Adjusted EPS for the quarter was $0.24, slightly above expectations but down $0.02 year over year [14][23] Business Line Data and Key Metrics Changes - The Specialty Products and Technologies segment saw a core revenue decline of 70 basis points year over year, while the Equipment and Consumables segment experienced a core sales increase of 170 basis points [20][22] - Consumables showed strong growth across most categories and geographies, particularly in North America [12][13] - The orthodontics business, excluding China, saw positive growth in both Spark and Brackets and Wires [20][21] Market Data and Key Metrics Changes - The global dental market remained stable in Q1 2025, with underlying demand similar to the second half of 2024 [9][35] - Positive growth was noted in North America, Japan, and emerging markets, while Europe remained flat [26] - Consumer confidence indices in the U.S. have deteriorated, but this has not yet affected the company's results [10][35] Company Strategy and Development Direction - The company is focused on a value creation plan that includes growth in consumables, Nobel Biocare, and orthodontics, as well as price capture across most of its portfolio [25][26] - A tariff task force has been established to manage the impacts of tariffs and optimize supply chain flexibility [31][32] - The company maintains its 2025 guidance of 1% to 3% core growth and adjusted EBITDA margins of approximately 14% [11][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the dental market's long-term stability despite current macroeconomic uncertainties [27][35] - The company is navigating geopolitical uncertainties and has implemented cost controls to enhance operational productivity [10][28] - Future performance is expected to benefit from the unwinding of revenue deferrals in the second half of the year [16][39] Other Important Information - The company has made progress on its $250 million share repurchase program, purchasing $19 million worth of stock in Q1 [23] - Free cash flow was an outflow of $5 million in Q1, typical for the first quarter due to timing of incentive compensation [15][22] Q&A Session Summary Question: Can you provide specifics on your current tariff exposure and mitigation strategies? - The company has significant tariff exposure from U.S. goods imported into China and vice versa, with mitigation strategies including shifting supply sources and working with suppliers to manage costs [42][44] Question: What are the trends in April and how do they relate to higher ASP procedures? - April has started positively, with no major shifts in procedure types observed, indicating stability in the market [50][52] Question: Can you quantify the gross impact of tariffs and customer responses? - The company is a net exporter to China, with premium implants being the largest exposure. Mitigation plans are in place, and customer sentiment varies by market segment [56][62] Question: What are the expectations for ortho VBP this year? - The ortho VBP process is progressing as expected, with anticipated benefits in the second half of the year [69][71] Question: How is the company managing pricing power in a tariff environment? - Pricing power varies by market and product category, with higher-end clinicians willing to pay for innovation, while commodity products face more price sensitivity [78][81] Question: What are the expectations for the Challenger and Premium implant businesses? - The Challenger business experienced a dip in Q1 but is expected to maintain a steady growth trajectory throughout the year [94][96]

Becton Dickinson (BDX) came out with quarterly earnings of $3.35 per share, beating the Zacks Consensus Estimate of $3.28 per share. This compares to earnings of $3.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.13%. A quarter ago, it was expected that this medical device manufacturer would post earnings of $2.98 per share when it actually produced earnings of $3.43, delivering a surprise of 15.10%.Over the last four qua ...

Company Performance - Align Technology reported quarterly earnings of $2.13 per share, exceeding the Zacks Consensus Estimate of $1.98 per share, but slightly down from $2.14 per share a year ago [1] - The earnings surprise for this quarter was 7.58%, following a previous quarter where the company also surpassed expectations with earnings of $2.44 per share against an estimate of $2.43 [2] - The company posted revenues of $979.26 million for the quarter, surpassing the Zacks Consensus Estimate by 0.67%, but down from $997.43 million in the same quarter last year [3] Stock Performance - Align Technology shares have declined approximately 14.8% since the beginning of the year, compared to a 5.5% decline in the S&P 500 [4] - The current Zacks Rank for Align Technology is 3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $2.56 on revenues of $1.05 billion, and for the current fiscal year, it is $9.87 on revenues of $4.09 billion [8] - The outlook for the Medical - Dental Supplies industry, to which Align Technology belongs, is currently in the bottom 36% of over 250 Zacks industries, which may impact stock performance [9]

Cardinal Health, Inc. (CAH) is scheduled to report third-quarter fiscal 2025 results on May 1, before market open.In the last reported quarter, the company’s adjusted earnings per share (EPS) of $1.93 surpassed the Zacks Consensus Estimate by 10.3%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 9.6%, on average. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Let’s check out the factors that ...

Labcorp shares have added about 0.1% since the beginning of the year versus the S&P 500's decline of -6%. Labcorp (LH) came out with quarterly earnings of $3.84 per share, beating the Zacks Consensus Estimate of $3.73 per share. This compares to earnings of $3.68 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 2.95%. A quarter ago, it was expected that this medical laboratory operator would post earnings of $3.40 per share w ...

Becton Dickinson and Company (BDX) , popularly known as BD, is scheduled to report second-quarter fiscal 2025 results on May 1, before market open.In the last reported quarter, the company’s earnings per share (EPS) of $3.43 surpassed the Zacks Consensus Estimate by 15.1%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 7.3%, on average. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Let’s che ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Henry Schein (HSIC) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On th ...

根据《山东省社会团体成立及换届选举工作指引》和协会《章程》，会议审议通过了协会章程、换届选举办法以及 监票人、计票人名单等。在公平、公正的氛围中，通过无记名投票的方式，选举产生了牙槽外科专委会主任委员， 副主任委员，秘书长，常务委员及委员。邹城新里程口腔医院刘儒雷当选为山东省民营口腔医疗机构协会牙槽外科 专业委员会主任委员。 新当选主任委员刘儒雷在就职发言中表示，将带领全体委员积极开展学术交流、技术培训等工作，努力推动山东省 民营口腔医疗机构牙槽外科事业迈上新台阶。大会现场还举行了新当选主任委员单位授牌仪式。 邹城新里程口腔医院作为会长单位，将继续加强口腔医疗界交流与合作，持续提升牙槽外科技术水平，在推动行业 发展、服务患者口腔健康等方面发挥更为重要的引领作用。 本次会议由山东省民营口腔医疗机构协会主办，旨在进一步整合省内牙槽外科领域的优质资源，推动学科的规范 化、专业化发展，提升民营口腔医疗机构在牙槽外科方面的诊疗水平，更好地服务广大患者。 武汉大学口腔医院口腔外科主任医师、牙槽外科首席专家赵吉宏教授，山东第一医科大学附属省立医院(山东省立 医院)马利副教授，山东省民营口腔医疗机构协会荣誉会长李玉超、会长毛 ...