DENTSPLY International Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

DENTSPLY International (NAS: XRAY) filed its 10-K on Feb. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DENTSPLY International beat expectations on revenues and missed slightly on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank significantly.

Margins contracted across the board.

Revenue details
DENTSPLY International booked revenue of $738.0 million. The 10 analysts polled by S&P Capital IQ expected to see revenue of $722.6 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $568.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.51. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.52 per share on the same basis. GAAP EPS of $0.28 for Q4 were 40% lower than the prior-year quarter's $0.47 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.7%, 390 basis points worse than the prior-year quarter. Operating margin was 6.6%, 1,130 basis points worse than the prior-year quarter. Net margin was 5.5%, 640 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $716.0 million. On the bottom line, the average EPS estimate is $0.51.

Next year's average estimate for revenue is $2.97 billion. The average EPS estimate is $2.25.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 221 members out of 238 rating the stock outperform, and 17 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give DENTSPLY International a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DENTSPLY International is outperform, with an average price target of $41.56.

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At the time thisarticle 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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