What's Going On With Dentsply Sirona Stock Thursday? - Dentsply Sirona (NASDAQ:XRAY)

Dentsply Sirona Maintains Outlook Despite Sales Decline

Zinger Key Points

Adj EPS of $0.52 tops estimates as gross margins expand to 52.4% despite a 4.9% sales decline to $936M.
Adjusted EBITDA surged 14.6% to $197M with margin up to 21.1%, even as operating cash flow dipped to $48M.
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Dentsply Sirona Inc. XRAY shares are trading lower on Thursday.

The company reported second-quarter adjusted earnings per share of 52 cents, beating the analyst consensus estimate of 50 cents. Quarterly sales of $936 million (down 4.9% year over year) outpaced the Street view of $931.349 million.

Sales at the Connected Technology Solutions unit fell 5.9% at constant currency, while Essential Dental Solutions saw a 1.1% increase.

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Orthodontic and Implant Solutions declined 19.4%, and Wellspect Healthcare sales fell 2.5%.

In the second quarter, United States sales fell 18.3% at constant currency, Europe sales slipped 0.4%, and rest-of-world sales rose 0.5%.

Quarterly gross profit fell 4% year over year to $490 million, while gross margin expanded to 52.4% from 51.9%. Adjusted gross margin soared to 55.9% in the quarter under review, compared with 55.3% in the year-ago period.

Adjusted EBITDA in the second quarter jumped 14.6% to $197 million, compared with $173 million in the year-ago period. Adjusted EBITDA margin increased to 21.1% from 17.5% a year ago.

Operating cash flow in the second quarter was $48 million, compared to $208 million in the second quarter of 2024. The decrease was primarily due to unfavorable working capital and the receipt of a foreign tax refund in the prior year quarter.

On July 31, the company declared a quarterly cash dividend of 16 cents per share, an indicated annual rate of 64 cents per share. The dividend is payable on October 10.

Outlook

Dentsply Sirona reaffirmed its fiscal 2025 adjusted EPS guidance at $1.80–$2.00 per share, compared with the consensus estimate of $1.90. The company also upheld its 2025 sales outlook at $3.60–$3.70 billion, compared with the analyst consensus of $3.651 billion.

Price Action: XRAY shares are trading lower by 3.33% to $13.22 at last check Thursday.

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