×
S&P 500   3,818.05 (-0.09%)
DOW   31,017.00 (+0.23%)
QQQ   284.04 (+0.18%)
AAPL   139.99 (+1.86%)
MSFT   261.07 (+1.79%)
META   163.43 (+1.71%)
GOOGL   2,241.00 (+0.04%)
AMZN   109.25 (+1.72%)
TSLA   676.31 (-3.11%)
NVDA   155.18 (-2.90%)
NIO   21.57 (-3.53%)
BABA   115.82 (-0.81%)
AMD   77.53 (-4.02%)
MU   56.08 (-3.08%)
CGC   3.51 (-2.77%)
T   20.74 (+0.63%)
GE   64.04 (-2.79%)
F   11.50 (-2.62%)
DIS   95.12 (-0.83%)
AMC   13.32 (-0.45%)
PFE   51.14 (+0.95%)
PYPL   71.37 (-0.63%)
NFLX   176.48 (-1.74%)
S&P 500   3,818.05 (-0.09%)
DOW   31,017.00 (+0.23%)
QQQ   284.04 (+0.18%)
AAPL   139.99 (+1.86%)
MSFT   261.07 (+1.79%)
META   163.43 (+1.71%)
GOOGL   2,241.00 (+0.04%)
AMZN   109.25 (+1.72%)
TSLA   676.31 (-3.11%)
NVDA   155.18 (-2.90%)
NIO   21.57 (-3.53%)
BABA   115.82 (-0.81%)
AMD   77.53 (-4.02%)
MU   56.08 (-3.08%)
CGC   3.51 (-2.77%)
T   20.74 (+0.63%)
GE   64.04 (-2.79%)
F   11.50 (-2.62%)
DIS   95.12 (-0.83%)
AMC   13.32 (-0.45%)
PFE   51.14 (+0.95%)
PYPL   71.37 (-0.63%)
NFLX   176.48 (-1.74%)
S&P 500   3,818.05 (-0.09%)
DOW   31,017.00 (+0.23%)
QQQ   284.04 (+0.18%)
AAPL   139.99 (+1.86%)
MSFT   261.07 (+1.79%)
META   163.43 (+1.71%)
GOOGL   2,241.00 (+0.04%)
AMZN   109.25 (+1.72%)
TSLA   676.31 (-3.11%)
NVDA   155.18 (-2.90%)
NIO   21.57 (-3.53%)
BABA   115.82 (-0.81%)
AMD   77.53 (-4.02%)
MU   56.08 (-3.08%)
CGC   3.51 (-2.77%)
T   20.74 (+0.63%)
GE   64.04 (-2.79%)
F   11.50 (-2.62%)
DIS   95.12 (-0.83%)
AMC   13.32 (-0.45%)
PFE   51.14 (+0.95%)
PYPL   71.37 (-0.63%)
NFLX   176.48 (-1.74%)
S&P 500   3,818.05 (-0.09%)
DOW   31,017.00 (+0.23%)
QQQ   284.04 (+0.18%)
AAPL   139.99 (+1.86%)
MSFT   261.07 (+1.79%)
META   163.43 (+1.71%)
GOOGL   2,241.00 (+0.04%)
AMZN   109.25 (+1.72%)
TSLA   676.31 (-3.11%)
NVDA   155.18 (-2.90%)
NIO   21.57 (-3.53%)
BABA   115.82 (-0.81%)
AMD   77.53 (-4.02%)
MU   56.08 (-3.08%)
CGC   3.51 (-2.77%)
T   20.74 (+0.63%)
GE   64.04 (-2.79%)
F   11.50 (-2.62%)
DIS   95.12 (-0.83%)
AMC   13.32 (-0.45%)
PFE   51.14 (+0.95%)
PYPL   71.37 (-0.63%)
NFLX   176.48 (-1.74%)

Dentsply Stock is Repricing Itself

Thursday, May 26, 2022 | Jea Yu
Dentsply Stock is Repricing Itself

Global dental products provider Dentsply (NASDAQ: XRAY) stock has been plunging worse than the benchmark indices down (-34%) on the year. The maker of SureSmile clear dental aligner systems has diversified its portfolio with the acquisition of Byte and Propel Orthodontics. The Company admittedly had a disappointing start to the year plagued by global supply chain disruptions, COVID restrictions in China, the Russian Ukraine conflict, and unfavorable foreign exchange rates. These headwinds are expected to continue and have been factored into its lowered fiscal full-year 2022 downside guidance. Inflationary pressures squeezed operating margins down to 15.9% for the first quarter, partially offset by price increases. China's sales were hampered by the lockdowns and COVID restrictions in China. European sales were strong with 7% organic growth. The U.S. was the key downfall for earnings. Shares trade at 15.3X forward earnings compared to key competitor Align Technologies (NASDAQ: ALGN) shares trading at 27.5X forward earnings. The Company still believes most of the headwinds are transitory as margins are expected to improve back over 17% for the full year. Prudent investors seeking exposure in the clear aligner dental segment can watch for opportunistic pullbacks in shares of Dentsply.


Q1 Fiscal Year 2023 Earnings Release

On May 10, 2022, Dentsply released its fiscal first-quarter 2022 results for the quarter ending March 2022. The Company reported an earnings-per-share (EPS) profit of $0.52 excluding non-recurring items missing consensus analyst estimates for a profit of $0.54 by (-$0.02). Revenues fell (-6.1%) year-over-year (YoY) to $45 million missing the consensus analyst estimates of $980 million. Dentsply CEO John Groetelaars stated, “The first quarter was a challenging quarter, and our financial performance and revised outlook reflect the impact of larger-than-expected macroeconomic headwinds and lower-than-expected performance in the United States. Despite these challenges, organic growth in Europe was robust, demand remains strong, and our teams are working diligently to reduce lead times to address supply chain challenges.”

Downside Guidance

Dentsply issued downside guidance for fiscal full-year 2022 EPS between $2.35 to $2.55, down from $3.05 to $3.25 in previous guidance, versus $2.79 consensus analyst estimates. Fiscal full-year 2022 revenues are expected to come in between $4.1 billion and $4.2 billion, down from $4.3 billion to $4.4 billion in previous estimates) versus $4.24 billion consensus analyst estimates.

Conference Call Takeaways

Interim CEO Groetelaars admitted that Q1 was a disappointing quarter that impacted global supply chain disruption and “unfavorable” foreign exchange rates. The U.S. was the worst hit as Europe delivered 7% organic growth driven by SureSmile and implants. The total clear aligner business saw double-digit sequential growth in the quarter. The operating margin was 15.9% impacted by lower manufacturing volume and inflationary pressures. Dentsply Interim CFO Barbara Bodem provided more insight into the numbers. Organic sales declined (-1.4%) in fiscal Q1 2022 as sales declined (-6.1%). Regions outside of the U.S. posted health growth. Supply chain disruptions impacted most notably in imaging despite strong demand as evidenced by its high order backlog. Byte unique visitor traffic hit an all-time high in March 2022. Gross margins fell 280 bps. She pointed out, “We attribute approximately 60% of the year-over-year decline to the transitory macro challenges of foreign exchange, inflationary pressures, and the impact of COVID in China. As a result, adjusted earnings per share was $0.52 versus $0.72 in the prior-year quarter.” Patient volume softness was attributed to COVID-19 notably in China. She still expected fiscal full-year 2022 margins to recover back above 17%.

XRAY Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily frames provides a clearer view of the landscape for XRAY stock. The weekly rifle chart peaked at the $49.29 Fibonacci (fib) level before plunging. The weekly rifle chart downtrend has a falling 5-period moving average (MA) at $39.48 with weekly lower Bollinger Bands (BBs) at $32.90. The weekly stochastic is flat just below the 10-band. The weekly market structure low (MSL) triggers a breakout through $40.12. The daily rifle chart has a make or break with a flat 5-period MA at $38.19 and 15-period at $39.21 as stochastic attempts to form a mini pup. The daily lower BBs sits at $35.62. The daily 50-period MA resistance sits at $45.02 and upper BBs at $43.76. Prudent investors can wait for opportunistic pullback levels at the $35.87 fib, $33.91 fib, $33.06 fib, $31.58 fib, $30.23 fib, $29.43 fib, $27.46 fib, and the $26.20 fib level. Upside trajectories range from the $45.17 fib up to the $52.13 fib level.

Dentsply Stock is Repricing Itself

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
DENTSPLY SIRONA (XRAY)
3.5265 of 5 stars
$36.26+1.2%1.38%21.46Hold$50.56
Align Technology (ALGN)
2.7014 of 5 stars
$240.63-0.5%N/A27.07Buy$586.20
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in DENTSPLY SIRONA right now?

Before you consider DENTSPLY SIRONA, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and DENTSPLY SIRONA wasn't on the list.

While DENTSPLY SIRONA currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:


Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastHow to Profit In The Bear Market

Today, Kate is joined by a repeat guest, Rob Isbitts of Sungarden Investment Publishing. Rob specializes in ETF portfolios designed to deliver returns in any kind of market condition, including the current bear. In this conversation, Rob gives specific ideas for handling various allocations in your portfolio, and discusses how to approach inverse ETFs.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.