Sirona Posts Upbeat Q2 Earnings, But Sales Miss Views

Sirona Dental Systems, Inc. SIRO reported better-than-expected earnings for the fiscal second quarter, but the company's sales missed analysts' estimates. The Long Island City, New York-based company posted quarterly earnings of $36.0 million, or $0.64 per share, compared to $37.3 million, or $0.66 per share, in the year-ago quarter. Excluding items, the company's adjusted earnings came in at $0.76 per share. Its revenue dropped 9 percent year-over-year to $257.3 million, while revenue rose 2 percent on a local currency basis. Analysts were expecting a loss of $0.75 per share on revenue of $263.8 million. The average estimate among 4 Estimize users was for earnings of $0.78 per share and revenue of $267.55 million. Revenue in the United States rose 8.6 percent, while international revenue slipped 15.3 percent in U.S. dollars. Gross profit margin widened to 55.9 percent in the second quarter, from 53.6 percent in the year-ago period. At March 31, 2015, Sirona had $400.3 million in cash and cash equivalents and $78.6 million in total debt. Jeffrey T. Slovin, President and CEO of Sirona said: "During the second quarter, 2.0% local currency growth was driven by a combination of factors, led by solid 8.6% growth in the U.S. Instruments and Treatment Centers continued their positive momentum. CAD/CAM returned to growth driven by strong new user demand. Imaging sales slightly declined with dealers awaiting the launch of our new Orthophos SL platform. Overall, our year to date performance is in line with our expectations." For the full year, the company reaffirmed its guidance. Sirona Dental projects FY15 earnings of $3.95 to $4.05 per share. Sirona shares gained 1 percent to close at $94.30 yesterday.