DENTSPLY International Earnings: Here’s Why Investors Don’t Like These Results

DENTSPLY International Inc. (NASDAQ:XRAY) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.2%.

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DENTSPLY International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.52 in the quarter as EPS of $0.52 in the year-earlier quarter.

Revenue: Rose 2.19% to $732.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DENTSPLY International Inc. reported adjusted EPS income of $0.52 per share. By that measure, the company missed the mean analyst estimate of $0.56. It missed the average revenue estimate of $732.87 million.

Quoting Management: Bret Wise, Chairman and Chief Executive Officer, stated “DENTSPLY reported record revenue and flat adjusted earnings per share for the first quarter reflecting the slow growth of the global dental market at present and important investments made by the Company during the quarter. Looking forward, we believe that we have opportunities to accelerate growth in both sales and earnings as the year progresses. Given the current market environment and currency exchange rates, we are revising our expectations for adjusted earnings per share for 2013 to a range of $2.33 to $2.43.”

Key Stats (on next page)…

Revenue decreased 2.81% from $753.29 million in the previous quarter. EPS decreased 7.14% from $0.56 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.66 to a profit $0.67. For the current year, the average estimate has moved down from a profit of $2.45 to a profit of $2.43 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)