Dentsply Sirona (Nasdaq:XRAY) shares fell today despite first-quarter results that came in ahead of the consensus forecast.
Shares of XRAY fell 2.9% at $40.88 apiece in early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 0.4%.
The Charlotte, North Carolina-based dental equipment and supplies maker posted losses of $19 million. That amounts to losses of 9¢ per share, on sales of $978 million for the three months ended March 31, 2023.
Dentsply recorded an $80 million bottom-line slide into the red despite sales growth of 1%. The company attributed a large chunk of its net loss to restructuring-related charges and other costs totaling $71 million net of tax. Dentsply enacted its restructuring plan in February, laying off 10% of its workforce and changing its operating model.
Adjusted to exclude one-time items, earnings per share totaled 39¢. That landed 5¢ ahead of projections on Wall Street. Dentsply beat sales estimates, too, as analysts expected $937.7 million in revenue.
Dentsply expects stronger results in 2023
Campion said the company’s first-quarter performance means it intends to raise the low end of its 2023 guidance. He attributed this decision to stable patient traffic in key markets and improved confidence in execution.
“Our first quarter results reflect a strong start to 2023 that exceeded our outlook, driven primarily by strong demand for aligners and consumables,” said Simon Campion, President and CEO. “We are encouraged by the results in the quarter and are beginning to see promising momentum from our transformation work, but recognize that we continue to operate in a volatile macroeconomic environment.
“We remain confident that our plans will deliver meaningful long-term value for our shareholders, customers, and employees alike.”
Dentsply now expects sales between $3.9 billion and $3.95 billion, with the low end increasing by $50 million. It upped the back end of its EPS guidance by 5¢ to a new range of $1.85 to $2.