Sirona Dental Systems Increases Sales but Misses Estimates on Earnings

Sirona Dental Systems (NAS: SIRO) reported earnings on Feb. 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Sirona Dental Systems beat slightly on revenue and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.

Margins dropped across the board.

Revenue details
Sirona Dental Systems logged revenue of $258.1 million. The 13 analysts polled by S&P Capital IQ expected revenue of $254.3 million. Sales were 9.5% higher than the prior-year quarter's $235.6 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.91. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.92 per share on the same basis. GAAP EPS of $0.67 for Q1 were 11% lower than the prior-year quarter's $0.75 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 53.8%, 150 basis points worse than the prior-year quarter. Operating margin was 21.0%, 280 basis points worse than the prior-year quarter. Net margin was 14.8%, 320 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $232.5 million. On the bottom line, the average EPS estimate is $0.69.

Next year's average estimate for revenue is $969.5 million. The average EPS estimate is $3.08.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 106 members out of 119 rating the stock outperform, and 13 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Sirona Dental Systems a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sirona Dental Systems is outperform, with an average price target of $53.85.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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