Dentsply Sirona (Nasdaq:XRAY) shares took a slight hit today on third-quarter results that came up shy of the consensus forecast.
The Charlotte, North Carolina-based dental equipment and supplies maker posted losses of $1.1 billion in the quarter. That amounts to $5.01 per share on sales of $947 million for the three months ended Sept. 30, 2022.
Dentsply Sirona reported a massive bottom-line slide into the red on a sales decline of 8.9%. In addition, it recorded a non-cash charge for “the impairment of goodwill and intangible assets” worth $1.1 billion. The company attributed this to macroeconomic factors resulting from weakened global demand and higher cost of capital.
Additionally, it felt the effects of unfavorable foreign currency impacts and increased raw material, supply chain and service costs. These contributed to reduced revenue expectations and lowered expectations for future cash flows.
Adjusted to exclude one-time items, earnings per share came in at 41¢. That falls 16¢ short of expectations on Wall Street. The company fell short on sales, too, as analysts projected revenues of $1.03 billion.
During the quarter, the company conducted an internal investigation into the potential wrongdoings of former executives. However, earlier this month, Dentsply reported that its board’s audit committee found no evidence of intentional wrongdoing or fraud on the part of its former CEO or CFO.
Dentsply ‘not satisfied’ with third-quarter performance
“Our third quarter results reflect continued macroeconomic headwinds, including foreign currency impacts, global supply chain challenges, and regional softness in the U.S. and China. Despite the challenges this quarter, we were encouraged by double-digit growth in clear aligners, solid performance in Europe, and continued strong demand for imaging equipment,” said Simon Campion, Dentsply CEO. “We are not satisfied with third-quarter results. However, this quarter marks an important turning point as we enter our company’s next chapter. We have initiated a comprehensive review of our entire business in order to improve our execution, build a winning portfolio, and return the company to growth.
“Dentsply Sirona has great products and solutions, a healthy innovation pipeline, and we are committed to charting a path forward which delivers better and more consistent results for our shareholders.”
Dentsply reduced its guidance for the full year. It said it now expects to log adjusted EPS of between $1.90 and $2.00 for the year. The company projects revenues between $3.85 billion and $3.88 billion.
Shares of XRAY dropped more than 4% to $30.49 apiece in morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose more than 6.