Yahoo Finance Earnings Miss: DENTSPLY SIRONA Inc. Missed EPS By 64% And Analysts Are Revising Their Forecasts
Last week, you might have seen that DENTSPLY SIRONA Inc. (NASDAQ:XRAY) released its quarterly result to the market. The early response was not positive, with shares down 7.5% to US$28.29 in the past week. It looks like a pretty bad result, all things considered. Although revenues of US$953m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 64% to hit US$0.09 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for DENTSPLY SIRONA
Following last week's earnings report, DENTSPLY SIRONA's 15 analysts are forecasting 2024 revenues to be US$3.94b, approximately in line with the last 12 months. Earnings are expected to improve, with DENTSPLY SIRONA forecast to report a statutory profit of US$1.06 per share. In the lead-up to this report, the analysts had been modelling revenues of US$3.99b and earnings per share (EPS) of US$1.31 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
The average price target fell 7.0% to US$33.82, with reduced earnings forecasts clearly tied to a lower valuation estimate. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values DENTSPLY SIRONA at US$38.00 per share, while the most bearish prices it at US$27.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.05% by the end of 2024. This indicates a significant reduction from annual growth of 1.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.1% per year. It's pretty clear that DENTSPLY SIRONA's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that DENTSPLY SIRONA's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of DENTSPLY SIRONA's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on DENTSPLY SIRONA. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple DENTSPLY SIRONA analysts - going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for DENTSPLY SIRONA that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
