Post Earnings Coverage as DENTSPLY Sales Surge 49%

Upcoming AWS Coverage on Becton, Dickinson and Co. Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 15, 2016 / Active Wall St. announces its post-earnings coverage on DENTSPLY International Inc. (NASDAQ: XRAY). The company reported its financial results for the third quarter fiscal 2016 (Q3 FY16) on November 04, 2016. The York, Pennsylvania-based company’s net sales (excluding precious metals) of the combined businesses grew 49.2% y-o-y at constant currency exchange rates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of DENTSPLY’s competitors within the Medical Instruments & Supplies space, Becton, Dickinson and Co. (NYSE: BDX), reported on November 03rd, 2016, results for 2016 fourth fiscal quarter and full year. AWS will be initiating a research report on Becton, Dickinson in the coming days.

Today, AWS is promoting its earnings coverage on XRAY; touching on BDX. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=XRAY

http://www.activewallst.com/registration-3/?symbol=BDX

Earnings Reviewed

In Q3 FY16, DENTSPLY reported net sales of $954.2 million which was above the $648.9 million recorded at the end of Q3 FY15. However, net sales numbers for the reported quarter came in below market expectations of $960.0 million. Additionally, Q3 FY16 net sales, excluding precious metal content, rose to $939.2 million from $629.3 million in Q3 FY15. Growth in net sales, excluding precious metal content, was due to positive currency translation effect, which impacted net sales by approximately 40 basis points as thaw U.S. dollar weakened over the prior year’s period.

The dental solutions company reported Q3 FY16 net income attributable to Dentsply Sirona of $92.5 million, or $0.39 per diluted share, compared to $84.5 million, or $0.59 per diluted share, in Q3 FY15. Furthermore, adjusted net earnings for the reported period came in flat at $0.66 per diluted share but above consensus market estimate of $0.63 per diluted share.

Operating Metrics

For the three months ended on September 30, 2016, the company posted gross margin of $513.6 million, or 53.8% of net sales, compared to $369.5 million, or 56.9% of net sales, in the prior year’s quarter. The company’s operating margin for Q3 FY16 came in at $126.6 million, or 13.3% of net sales, versus $98.6 million, or 15.2% of net sales, in Q3 FY15.

Segment Performance

During Q3 FY16, the company’s Dental and Healthcare Consumables segment reported net sales, excluding precious metals, of $497.2 million, registering a 7.0% y-o-y growth. Furthermore, sales in the company’s combined businesses for Dental and Healthcare Consumables, during Q3 FY16, came in flat on a constant currency basis with internal growth down 0.3% y-o-y. The segment’s operating income, during the quarter, stood at $134.3 million versus $122.8 million in Q3 FY15.

Technologies segment net sales surged 168.5% y-o-y to $442.0 million in Q3 FY16, primarily due to consolidation of its Sirona businesses. During the reported quarter, segment’s sales in the combined businesses advanced 0.9% y-o-y on a constant currency basis, whereas internal sales of the combined businesses registered a 0.2% y-o-y growth. Additionally, the segment reported operating income of $89.8 million in Q3 FY16 compared to $19.5 million in the prior year’s comparable quarter.

Geographical Contribution

During the reported quarter, DENTSPLY’s U.S. net sales, excluding precious metals, was $334.2 million, compared to $249.5 million in Q3 FY15. However, combined businesses U.S. sales declined 3.1% y-o-y on a constant currency basis with internal growth falling 3.2% y-o-y during Q3 FY16.

DENTSPLY’s European net sales in Q3 FY16, excluding precious metals, surged 41.3% to $348.3 million from $246.5 million in Q3 FY16. The combined businesses sales grew 1.6% y-o-y on a constant currency basis with internal growth of 1.2% y-o-y in the reported period.

Net sales in Rest of World, excluding precious metals, grew 92.6% y-o-y in Q3 FY16 to $256.7 million from $133.3 million in the prior year’s comparable period. Furthermore, combined business sales rose 3.8% y-o-y on a constant currency basis with internal growth of 2.6% y-o-y in Q3 FY16.

Cash Flow & Balance Sheet

In the nine months ended on September 30, 2016, DENTSPLY generated $341.0 million in cash from operations compared to $371.0 million at the end of quarter in the year ago period. The company had cash and cash equivalents balance of $330.7 million as on September 30, 2016, compared to $284.6 million, at the close of books on December 31, 2015. Furthermore, long-term debt amounting to $1.57 billion stood in the company’s books of accounts as on September 30, 2016, compared to $1.14 billion as on December 31, 2015.

Share Repurchases

On September 21, 2016, the Board of Directors raised the authorized number of shares that can be held in treasury by 5.0 million to 39.0 million. The company repurchased 11.4 million shares for 699.6 million during the first nine months of FY16 and has 32.9 million shares of treasury stock as of September 30, 2016.

Outlook

In its guidance for full year FY16, DENTSPLY raised the bottom-end of its previous EPS guidance range of $2.70 per share to $2.80 per share and now anticipates adjusted EPS in the range of $2.75 per share to $2.80 per share.

Stock Performance

DENTSPLY’s share price finished yesterday’s trading session at $58.68, declining 2.56%. A total volume of 2.37 million shares exchanged hands, which was higher than the 3 months average volume of 1.47 million shares. The stock is trading at a PE ratio of 30.14 and has a dividend yield of 0.53%.

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