Dentsply Sirona delivered 8% and 20% declines in revenue and adjusted EPS, respectively, during the third fiscal quarter, coming in behind the FactSet consensus. Guidance for both was lowered, and shares traded down 13% afterhours on Nov 5.
Expertise and leadership in digital dentistry position Dentsply to enjoy secular tailwinds as more doctors move away from dental labs and adopt chairside solutions.
Bears
Dentsply’s CAD/CAM products mainly play in the premium category. A wide adoption of digital dental solutions has led to more affordable options on the market, making the space more fragmented and competitive.
Dentsply Sirona is one of the world’s largest manufacturers of dental equipment and supplies. It is a result of a merger of equals in 2016 between Dentsply International (dental consumables and lab products) and Sirona Dental Systems (technologically advanced dental equipment). The firm’s wide portfolio consists of dental consumables, lab products, CAD/CAM and imaging technology, medical devices, and specialty products in orthodontics, endodontics, and implantology. It distributes two-thirds of its dental consumables, technology, and equipment through third-party distributors. The remaining portfolio is sold to labs and offices through the firm’s salesforce or directly to consumers.