Envista (NYSE:NVST) Announces Earnings Results

Key Points

• Envista exceeded quarterly expectations: EPS came in at $0.41 versus the $0.34 consensus, while revenue rose 7.1% year over year to $730.5 million. Adjusted EBITDA increased 28% and free-cash-flow conversion reached 158%.
• Full-year 2026 guidance was raised and narrowed to adjusted EPS of $1.50–$1.55, core sales growth of 3.5%–4.5%, and adjusted EBITDA growth of 11%–14%; the company also expects an approximately 26% tax rate.
• Risks include slower second-half growth and China pricing pressure: Management anticipates flat to slightly negative core growth in the fourth quarter, while Chinese procurement programs could drive implant price compression of roughly 10%–15% and additional orthodontic pressure.

Envista (NYSE:NVST - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.07, FiscalAI reports. Envista had a return on equity of 7.11% and a net margin of 2.41%.The business had revenue of $730.50 million during the quarter, compared to analysts' expectations of $716.11 million. During the same period in the prior year, the firm posted $0.26 EPS. The business's quarterly revenue was up 7.1% compared to the same quarter last year. Envista updated its FY 2026 guidance to 1.500-1.550 EPS.

Here are the key takeaways from Envista's conference call:

• Strong second-quarter results: Envista delivered 5% core sales growth, 28% adjusted EBITDA growth, 58% adjusted EPS growth to $0.41, and 158% free-cash-flow conversion. Growth was broad-based across both reporting segments and major geographies.
• Full-year guidance was raised and narrowed to 3.5%-4.5% core growth, 11%-14% adjusted EBITDA growth, and adjusted EPS of $1.50-$1.55; the expected tax rate was also reduced to approximately 26% from prior guidance.
• Equipment & Consumables grew 8.5% organically, supported by high-single-digit growth in consumables and diagnostics, continued share gains, pricing, and new products. Spark again grew at a double-digit rate, while new implant, orthodontic, and consumable product launches are intended to support future growth.
• Operational execution continued to improve profitability, with adjusted EBITDA margin expanding 230 basis points to 14.7% through manufacturing productivity, G&A savings, pricing, and favorable volume mix. The company also repurchased approximately 2.4 million shares and ended the quarter with net debt of 0.7 times adjusted EBITDA.
• Management expects slower reported growth in the second half, including flat to slightly negative core growth in the fourth quarter because of four fewer selling days. China’s upcoming ortho and implant volume-based procurement programs are expected to create significant price pressure, including roughly 10%-15% implant price compression and potentially greater pressure in orthodontics.

Envista Stock Performance

Shares of NVST traded up $0.55 during midday trading on Wednesday, reaching $28.51. 6,998,014 shares of the stock were exchanged, compared to its average volume of 2,798,520. Envista has a twelve month low of $18.77 and a twelve month high of $30.42. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.44 and a quick ratio of 2.06. The company has a market capitalization of $4.64 billion, a price-to-earnings ratio of 69.54, a PEG ratio of 1.58 and a beta of 0.86. The business's 50-day moving average price is $25.87 and its 200 day moving average price is $25.99.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on NVST. BMO Capital Markets began coverage on Envista in a research note on Wednesday, July 8th. They set a "market perform" rating and a $27.00 target price for the company. Piper Sandler increased their price target on shares of Envista from $25.00 to $26.00 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Evercore reissued an "outperform" rating and set a $33.00 price objective on shares of Envista in a report on Thursday, May 7th. Morgan Stanley raised their price objective on shares of Envista from $19.00 to $21.00 and gave the stock an "equal weight" rating in a report on Friday, April 24th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Envista from $26.00 to $29.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Six analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $28.62.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in NVST. Millennium Management LLC increased its position in Envista by 1,442.7% during the fourth quarter. Millennium Management LLC now owns 2,420,615 shares of the company's stock worth $52,552,000 after buying an additional 2,263,712 shares during the period. Holocene Advisors LP acquired a new stake in shares of Envista in the second quarter valued at approximately $43,936,000. Alliancebernstein L.P. boosted its holdings in shares of Envista by 34.0% in the second quarter. Alliancebernstein L.P. now owns 6,098,445 shares of the company's stock valued at $119,164,000 after acquiring an additional 1,547,656 shares during the period. Freestone Grove Partners LP acquired a new stake in shares of Envista in the fourth quarter valued at approximately $29,046,000. Finally, Balyasny Asset Management L.P. purchased a new position in shares of Envista during the third quarter worth approximately $24,260,000.

Envista Company Profile

Envista Holdings Corporation is a global dental products company that develops, manufactures and markets a broad portfolio of dental consumables, equipment and technology solutions. Headquartered in Brea, California, Envista serves dental practitioners, specialists and laboratories in more than 150 countries. The company's offerings span implant, orthodontic, endodontic and restorative product lines as well as digital imaging systems and practice management software.

Envista's product brands include Nobel Biocare for dental implants and restorative solutions, Ormco for orthodontic appliances and treatment systems, Kerr for restorative and endodontic materials, KaVo for dental imaging and handpieces, and Vista for surgical drills and instruments.

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