Dentsply Sirona Inc. (NASDAQ:XRAY) stock is trading lower on Thursday after weaker-than-expected third-quarter earnings and lowered guidance.
• XRAY shares are approaching critical lows. Get the inside scoop here.
Adjusted earnings came in at 37 cents, down from 50 cents a year ago, beating the consensus of 45 cents. The decline was attributed to sales mix, tariffs and a higher tax rate.
The dental equipment company reported sales of $904 million, down 5% year over year, beating the consensus of $896.71 million.
Adjusted EBITDA margin improved 50 basis points to 18.4%. Expansion driven by reduced OpEx, partially offset by lower sales, unfavorable mix, and tariff impacts on gross profit.
Connected Technology Solutions’ revenues fell 3.9% to $259 million on lower volumes.
Orthodontic and Implant Solutions sales fell 15% to $205 million, due to around $30 million Byte impact and lower implant volumes in the U.S. and China.
“Third quarter results fell short of our expectations and reflect the operational and strategic challenges facing the business,” said Dan Scavilla, president and CEO.
“The board of directors and I are taking decisive action to improve performance with the launch of our Return-to-Growth strategy … we believe we will be able to deliver sustained, profitable growth over the next 24 months and enhance long-term value for Dentsply Sirona shareholders,” Scavilla said.
Management Update
CFO Matt Garth has departed the company. The search for his successor is underway. Leslie Varon, former CFO of Xerox, will act as an interim finance chief.
Guidance
Dentsply Sirona lowered fiscal 2025 adjusted earnings from $1.80-$2 per share to $1.60, versus the consensus of $1.88.
The reaffirmed 2025 sales guidance of $3.6 billion-$3.7 billion compared to the consensus of $3.65 billion.
In September, following review and deliberation, Dentsply Sirona concluded to retain Wellspect as a subsidiary within its portfolio. The business is focused on bladder and bowel care products.
The company said Wellspect is well-positioned in the large and growing continence care space, which has an estimated $2 billion addressable market.
XRAY Price Action: Dentsply Sirona stock is down 12.14% at $11.09 at publication on Thursday.
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