Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Envista (NYSE:NVST) and its peers.
The dental equipment and technology industry encompasses companies that manufacture orthodontic products, dental implants, imaging systems, and digital tools for dental professionals. These companies benefit from recurring revenue streams tied to consumables, ongoing maintenance, and growing demand for aesthetic and restorative dentistry. However, high R&D costs, significant capital investment requirements, and reliance on discretionary spending make them vulnerable to economic cycles. Over the next few years, tailwinds for the sector include innovation in digital workflows, such as 3D printing and AI-driven diagnostics, which enhance the efficiency and precision of dental care. However, headwinds include economic uncertainty, which could reduce patient spending on elective procedures, regulatory challenges, and potential pricing pressures from consolidated dental service organizations (DSOs).
The 4 dental equipment & technology stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.3% since the latest earnings results.
Best Q2: Envista (NYSE:NVST)
Uniting more than 30 trusted brands including Nobel Biocare, Ormco, and DEXIS under one corporate umbrella, Envista Holdings (NYSE:NVST) is a global dental products company that provides equipment, consumables, and specialized technologies for dental professionals.
Envista reported revenues of $682.1 million, up 7.7% year on year. This print exceeded analysts’ expectations by 7%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ constant currency revenue estimates and a solid beat of analysts’ full-year EPS guidance estimates.
Envista scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 9.8% since reporting and currently trades at $20.77.
Is now the time to buy Envista? Access our full analysis of the earnings results here, it’s free.
Dentsply Sirona (NASDAQ:XRAY)
With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ:XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide.
Dentsply Sirona reported revenues of $936 million, down 4.9% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a mixed quarter with a narrow beat of analysts’ full-year EPS guidance estimates but a miss of analysts’ constant currency revenue estimates.
The market seems content with the results as the stock is up 2.5% since reporting. It currently trades at $14.
Is now the time to buy Dentsply Sirona? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Align Technology (NASDAQ:ALGN)
Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ:ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.
Align Technology reported revenues of $1.01 billion, down 1.6% year on year, falling short of analysts’ expectations by 4.8%. It was a disappointing quarter as it posted a miss of analysts’ sales volume estimates and a significant miss of analysts’ EPS estimates.
Align Technology delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 28.9% since the results and currently trades at $145.25.
Read our full analysis of Align Technology’s results here.
Henry Schein (NASDAQ:HSIC)
With a vast inventory of over 300,000 products stocked in distribution centers spanning more than 5.3 million square feet worldwide, Henry Schein (NASDAQ:HSIC) is a global distributor of healthcare products and services primarily to dental practices, medical offices, and other healthcare facilities.
Henry Schein reported revenues of $3.24 billion, up 3.3% year on year. This number met analysts’ expectations. However, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates.
The stock is down 4.7% since reporting and currently trades at $66.84.
Read our full, actionable report on Henry Schein here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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