Company Reports

Dentsply Sirona delivered revenue and adjusted EPS declines of 4% and 1%, respectively, during the second quarter. Both figures came ahead of FactSet consensus. Full-year guidance for revenue ($3.5-3.6 billion) and EPS ($1.40-1.50) is unchanged. Shares are down 3% after hours.

Dentsply Sirona is one of the world’s largest manufacturers of dental equipment and supplies. It has a strong presence in dental computer-aided design/computer-aided manufacturing and has long reaped the benefits of being a first mover. However, lucrative economics and a rising appetite for cosmetic procedures have attracted a large number of competitors over the last decade and put the company on defense. To adapt and compete in an increasingly fragmented market, Dentsply has invested more in Cerec, its flagship chairside workflow system. Since 2019, it has launched a new scanner, milling machine, 3D printer, and a cloud solution that integrates different parts of the workflow. The firm also expanded its partnership with 3Shape, an intraoral scanner and dental CAD/CAM software manufacturer, and enabled workflow integration. We appreciate this strategic move because Cerec has historically been a closed system, and we believe opening up its workflow could expand Dentsply's end markets and allow doctors who use third-party equipment to adopt the firm’s offerings more easily.

Dentsply delivered flat revenue growth, or a 7% decline in constant currencies, and a 39% decline in adjusted EPS during the first quarter.

Dentsply Sirona is one of the world’s largest manufacturers of dental equipment and supplies. It has a strong presence in dental computer-aided design/computer-aided manufacturing and has long reaped the benefits of being a first mover. However, lucrative economics and a rising appetite for cosmetic procedures have attracted a large number of competitors over the last decade and put the company on defense. To adapt and compete in an increasingly fragmented market, Dentsply Sirona has invested more in Cerec, its flagship chairside workflow system. Since 2019, it has launched a new scanner, milling machine, 3D printer, and a cloud solution that integrates different parts of the workflow. The firm also expanded its partnership with 3Shape, an intraoral scanner and dental CAD/CAM software manufacturer, and enabled workflow integration. We appreciate this strategic move because Cerec has historically been a closed system, and we believe opening up its workflow could expand Dentsply Sirona’s end markets and allow doctors who use third-party equipment to adopt the firm’s offerings more easily.

Dentsply Sirona delivered revenue and adjusted earnings per share growth of 6% and 5%, respectively, during the fourth quarter. Full-year guidance includes $3.55 billion in revenue and $1.45 in EPS, both at the midpoints, reflecting 3% and 8% declines.

Dentsply Sirona is one of the world’s largest manufacturers of dental equipment and supplies. It has a strong presence in dental computer-aided design/computer-aided manufacturing and has long reaped the benefits of being a first mover. However, lucrative economics and a rising appetite for cosmetic procedures have attracted a large number of competitors over the last decade and put the company on defense. To adapt and compete in an increasingly fragmented market, Dentsply Sirona has invested more in Cerec, its flagship chairside workflow system. Since 2019, it has launched a new scanner, milling machine, 3D printer, and a cloud solution that integrates different parts of the workflow. The firm also expanded its partnership with 3Shape, an intraoral scanner and dental CAD/CAM software manufacturer, and enabled workflow integration. We appreciate this strategic move because Cerec has historically been a closed system, and we believe opening up its workflow could expand Dentsply Sirona’s end markets and allow doctors who use third-party equipment to adopt the firm’s offerings more easily.

Dentsply Sirona's revenue declined 5% in the third quarter, slightly ahead of consensus. But adjusted earnings per share of $0.37 missed estimates by a high-teens percentage and led to a full-year guidance reduction. The shares slipped over 12% on the Nov. 6 announcement.

Dentsply Sirona is one of the world’s largest manufacturers of dental equipment and supplies. It has a strong presence in dental computer-aided design/computer-aided manufacturing and has long reaped the benefits of being a first mover. However, lucrative economics and a rising appetite for cosmetic procedures have attracted a large number of competitors over the last decade and put the company on defense. To adapt and compete in an increasingly fragmented market, Dentsply Sirona has invested more in Cerec, its flagship chairside workflow system. Since 2019, it has launched a new scanner, milling machine, 3D printer, and a cloud solution that integrates different parts of the workflow. The firm also recently expanded its partnership with 3Shape, an intraoral scanner and dental CAD/CAM software manufacturer, by allowing scans from 3Shape’s Trios scanner to be integrated with Dentsply Sirona’s workflow. We appreciate this strategic move because Cerec has historically been a closed system, and we believe opening up its workflow could expand Dentsply Sirona’s end markets and allow doctors who use third-party equipment to adopt the firm’s offerings more easily.

Dentsply Sirona reported second-quarter results with sales down 5% year over year and adjusted EPS up 6%. Both came in slightly ahead of FactSet consensus.

Dentsply Sirona is one of the world’s largest manufacturers of dental equipment and supplies. It has a strong presence in dental computer-aided design/computer-aided manufacturing and has long reaped the benefits of being a first mover. However, lucrative economics and a rising appetite for cosmetic procedures have attracted a large number of competitors over the last decade and put the company on defense. To adapt and compete in an increasingly fragmented market, Dentsply Sirona has invested more in CEREC, its flagship chairside workflow system. Since 2019, it has launched a new scanner, milling machine, 3D printer, and a cloud solution that integrates different parts of the workflow. The firm also recently expanded its partnership with 3Shape, an intraoral scanner and dental CAD/CAM software manufacturer, by allowing scans from 3Shape’s Trios scanner to be integrated with Dentsply Sirona’s workflow. We appreciate this strategic move because CEREC has historically been a closed system, and we believe opening up its workflow could expand Dentsply Sirona’s end markets and allow doctors who use third-party equipment to adopt the firm’s offerings more easily.

Dentsply Sirona announced that Chief Executive Officer Simon Campion, who joined the firm in September 2022, will leave the company on July 31 and be succeeded by Daniel Scavilla.

No-moat Dentsply Sirona reported first-quarter earnings that came in slightly ahead of our expectations. Total sales of $879 million were down 7.8% year over year, but roughly flat excluding the Byte discontinuation and currency headwinds. Soft patient foot traffic and weak doctor sentiment that pervaded the dental market in 2024 seeped into the new year and we think the rest of 2025 is likely to see more challenges amid tariff uncertainty and macro volatility. That said, we were slightly encouraged by the firm’s ability to deliver moderately stable results in this environment. While this quarterly result doesn’t reflect the tariffs that took effect in April, and we had lowered our sales and earnings per share assumptions ahead of earnings in April, management reaffirmed its full- year guidance for an organic sales decline of 2%-4% and EPS of $1.80-$2.00, giving investors some much-needed confidence behind the name.

We are reducing our fair value estimate for no-moat Dentsply Sirona to $20.50 per share from $22 and raising our Uncertainty Rating to Very High from High against the backdrop of near-term macroeconomic uncertainty and the likely tariff-induced profit and margin headwinds. The tariff situation remains fluid and dynamic and uncertainty in the dental industry remains high.

Dentsply Sirona is one of the world’s largest manufacturers of dental equipment and supplies. It has a strong presence in dental CAD/CAM (computer-aided design/computer-aided manufacturing) and has long reaped the benefits as a first-mover in the space. However lucrative economics and rising appetite for cosmetic procedures has attracted a large number of competitors over the last decade and put the company on a defensive footing. To adopt and compete in an increasingly fragmented market, Dentsply Sirona has invested more into its CEREC system, the firm’s flagship chairside workflow solutions. Since 2019, it has launched a new scanner, milling machine, 3D printer, as well as a new cloud solution that integrates different parts of the workflow together. The firm also recently expanded its partnership with 3Shape, an intraoral scanner and dental CAD/CAM software manufacturer, by allowing scans from 3Shape’s Trios scanner to be integrated with Dentsply Sirona’s workflow. We appreciate this strategic move because CEREC has historically been a closed system and we believe opening up its workflow could expand Dentsply Sirona’s end markets and allow doctors who use third-party equipment to adopt the firm’s offerings more easily.

On April 2, President Donald Trump announced a sweeping set of tariffs on all imports ranging from 10% to varying reciprocal rates, effective on April 5. In response, the broad dental market opened down yesterday at about a mid-single-digit percent from yesterday’s close and firms under our coverage—Align, Dentsply, Sirona, and Straumann—are all trading more than 5% lower at the time of writing. We think the industry can see two impacts from tariffs:

No-moat Dentsply Sirona reported soft fourth-quarter sales and ended the year on shaky footing. Total sales of $905 million were down 10.6% year over year, as three out of four segments delivered a sales drop. Byte, which was suspended in October, represented more than half of the organic sales decline. But even outside this brand, macro challenges and competitive pressures hit Dentsply hard. For example, Connected Technology Solutions, or CTS, was down 8.4%, and Essential Dental Solutions down 3.5%. The US was the most challenged region, with sales down roughly 30%, about 60% coming from Byte and the remainder from other units. The soft consumer sentiment as well as a mixed outlook on interest rates and tariffs all raise the uncertainty around the near-term recovery prospects of the region. After trimming our near-term assumptions, we are lowering our fair value estimate to $22 per share from $23.50.

Dentsply Sirona is one of the world’s largest manufacturers of dental equipment and supplies. It has a strong presence in dental CAD/CAM (computer-aided design/computer-aided manufacturing) and has long reaped the benefits as a first-mover in the space. However lucrative economics and rising appetite for cosmetic procedures has attracted a large number of competitors over the last decade and put the company on a defensive footing. To adopt and compete in an increasingly fragmented market, Dentsply Sirona has invested more into its CEREC system, the firm’s flagship chairside workflow solutions. Since 2019, it has launched a new scanner, milling machine, 3D printer, as well as a new cloud solution that integrates different parts of the workflow together. The firm also recently expanded its partnership with 3Shape, an intraoral scanner and dental CAD/CAM software manufacturer, by allowing scans from 3Shape’s Trios scanner to be integrated with Dentsply Sirona’s workflow. We appreciate this strategic move because CEREC has historically been a closed system and we believe opening up its workflow could expand Dentsply Sirona’s end markets and allow doctors who use third-party equipment to adopt the firm’s offerings more easily.

No-moat Dentsply Sirona’s third-quarter results were in line with our expectations. Total sales of $950 million was roughly flat year over year, and adjusted EPS reflected low-single-digit growth. However, the firm cited persistent macro challenges in dentistry from key markets like the US and Germany, and pressure is lingering longer than we had originally anticipated. Against this difficult backdrop, management lowered its full-year 2024 guidance and now expects $3.81 billion of sales at midpoint, about a 2% reduction from the previous figure, and EPS of $1.84 at midpoint, an 8% reduction from the prior outlook. We think the downward outlook revision coupled with the firm’s near-term uncertainty are causing investors to lose confidence in the firm. Shares heavily sold off after the release and closed down about 28%. After digesting Nov. 7’s news, we've raised the firm’s Uncertainty Rating to High from Medium and lowered our fair value estimate to $23.50 per share from $27.

Dentsply Sirona is one of the world’s largest manufacturers of dental equipment and supplies. It has a strong presence in dental CAD/CAM (computer-aided design/computer-aided manufacturing) and has long reaped the benefits as a first-mover in the space. However lucrative economics and rising appetite for cosmetic procedures has attracted a large number of competitors over the last decade and put the company on a defensive footing. To adopt and compete in an increasingly fragmented market, Dentsply Sirona has invested more into its CEREC system, the firm’s flagship chairside workflow solutions. Since 2019, it has launched a new scanner, milling machine, 3D printer, as well as a new cloud solution that integrates different parts of the workflow together. The firm also recently expanded its partnership with 3Shape, an intraoral scanner and dental CAD/CAM software manufacturer, by allowing scans from 3Shape’s Trios scanner to be integrated with Dentsply Sirona’s workflow. We appreciate this strategic move because CEREC has historically been a closed system and we believe opening up its workflow could expand Dentsply Sirona’s end markets and allow doctors who use third-party equipment to adopt the firm’s offerings more easily.

On Oct. 24, no-moat Dentsply Sirona unexpectedly announced that it has voluntarily suspended the sale and marketing of Byte aligners and impression kits after consulting with the Food and Drug Administration. Byte aligners are direct-to-consumer clear aligners and one of the last players focused on the DTC orthodontic model after key competitor SmileDirectClub filed for bankruptcy and subsequently shut down in 2023. While Byte has sought new markets with Byte+, a new hybrid model that takes patients through an initial treatment plan with a doctor and offers at-home procedures for the remainder, the doctor base that is registered with the program remains limited. According to the website, just over 210 providers across the US are Byte-approved, which is a fraction of the 85,000-plus doctors that market leader Align Technology ships Invisalign to. While Dentsply didn’t reveal the ultimate goal with Byte, we think it is possible that it will lean more into the hybrid program going forward. This is a similar approach to Candid, another US clear aligner player that used to offer a DTC model but has since converted to a hybrid model that mirrors Byte+.