Dentsply Sirona shares slip despite beating expectations in Q2

Dentsply Sirona (NSDQ:XRAY) reported 2nd quarter earnings that topped The Street, but still saw shares tumble in response.

The York, Penn.-based company reported profits of $105 million, or 44¢ per share, on sales of $1 billion for the 3 months ended June 30. That amounts to a massive 139% bottom-line gain as sales expanded 46.4% compared with the same period from last year.

Adjusting to exclude 1-time items, earnings per share were 76¢; Analysts on Wall Street were looking for adjusted earnings per share of 70¢, which the company handily topped.

Shares dipped over 3% on Friday, opening at $64.0 and closing at $61.99.

“I am pleased with the overall performance of our business this quarter. Sales grew 3.4% led by consumables and rest of world. Earnings came in strong with improved margins backed by robust cash flow. We continue to effectively deploy capital for the benefit of our shareholders. This quarter we announced the acquisition of MIS implants, which marks our entry into the $1.5 billion value implants market. We also repurchased an additional $100 million of shares, and paid $18 million in dividends. The integration is on track and our efforts are accelerating. As we move to the back half of the year we will ramp investments in R&D and global sales and service to support long-term growth. Next week’s Siroworld event will provide thousands of practitioners their 1st experience with the power of our integrated solutions. Through educational events like these, continuous innovation, and best-in-class customer service, Dentsply Sirona empowers dental professionals to deliver better, safer and faster dental care,” CEO Jeffrey Slovin said in prepared remarks.

The company reiterated its guidance for 2016, expecting to see earnings per share in the range of $2.70 to $2.80 with constant currency revenue growth between 4% and 6%.

In May, Dentsply Sirona topped expectations in the 1st quarter after it closed the $5.6 billion merger in February and created the world’s largest dental equipment maker.

Dentsply Sirona posted profits of $125.0 million, or 70¢ per share, on sales of $772.6 million for the 3 months ended March 31, for profit growth of 95.3% on sales growth of 17.7% compared with Q1 2015.

Adjusted to exclude 1-time items, earnings per share were 69¢, 6¢ ahead of the consensus on Wall Street, where analysts were looking for sales of $741.8 million.

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