Sirona Dental Systems Earnings: Here’s Why Investors are Bidding Up Shares

Sirona Dental Systems Inc. (NASDAQ:SIRO) delivered a profit and beat Wall Street’s expectations, BUT 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 closed up 4.99%.

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Sirona Dental Systems Inc. Earnings Cheat Sheet

Results: Net income increased 0.05% to $38.3 million (94 cents per diluted share) in the quarter versus a net gain of $38.28 million in the year-earlier quarter.

Revenue: Rose 5.53% to $272.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sirona Dental Systems Inc. reported adjusted net income of 94 cents per share. By that measure, the company beat the mean analyst estimate of $0.84. It missed the average revenue estimate of $266.64 million.

Quoting Management: Jost Fischer, Chairman and CEO of Sirona commented: “It is extremely gratifying for my last quarter as CEO of Sirona to leave on such a high note, reporting a record first quarter. The Company is in an excellent position. We continue to see significant enthusiasm surrounding the launch of our revolutionary Omnicam. Demand was so strong that we could not fulfill all of our orders. I am pleased to report that the ramp up phase of manufacturing for the Omnicam is behind us. We continue to see strong demand across Sirona’s broad product portfolio and in all major geographies. I am pleased to see us begin fiscal 2013, building on last year’s success: we extended our global leadership position and delivered strong financial results.”

Key Stats (on next page)…

Revenue increased 10.12% from $247.36 million in the previous quarter. Net income increased 10.25% from $34.74 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.74 to a profit $0.73. For the current year, the average estimate has moved up from a profit of $3.34 to a profit of $3.4 over the last ninety days.

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