DENTSPLY International Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component DENTSPLY International Inc. (NASDAQ:XRAY) will unveil its latest earnings on Thursday, October 25, 2012. DENTSPLY International manufactures and distributes dental equipment and products, including artificial teeth and dental consumable products.

DENTSPLY International Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 51 cents per share, a rise of 10.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 55 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 51 cents during the last month. Analysts are projecting profit to rise by 9.5% compared to last year’s $2.20.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of 62 cents per share against a mean estimate of profit of 56 cents. The company fell in line with estimates in the first quarter.

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Wall St. Revenue Expectations: Analysts predict a rise of 15.8% in revenue from the year-earlier quarter to $717.5 million.

A Look Back: In the second quarter, profit rose 8.8% to $80.8 million (56 cents a share) from $74.2 million (52 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 25.2% to $763 million from $609.4 million.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose 93 cents (2.6%), from $35.98 to $36.91. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 8.6% (+$3.07) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 23.8% over the last four quarters.

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. Net income fell in the third quarter of the last fiscal year, the fourth quarter of the last fiscal year and the first quarter before snapping that run with a profit increase in the second quarter.

Analyst Ratings: With seven analysts rating the stock a buy, one rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.48 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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