Dentsply Sirona’s first quarter results were well received by the market, as the company reported revenue and non-GAAP profit above Wall Street expectations despite a 7.8% year-over-year sales decline. Management attributed this performance to operational efficiencies, continued growth in European markets, and margin expansion from cost controls and portfolio optimization. CEO Simon Campion noted, “We continued to make progress towards driving reliable and sustainable performance,” highlighting ongoing improvements in imaging and Wellspect Healthcare segments. The company also benefited from transformational savings and disciplined execution, which helped offset softer demand in certain U.S. categories and the ongoing impact from the Byte business wind-down.
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Dentsply Sirona (XRAY) Q1 CY2025 Highlights:
- Revenue: $879 million vs analyst estimates of $852.2 million (7.8% year-on-year decline, 3.2% beat)
- Adjusted EPS: $0.43 vs analyst estimates of $0.30 (43% beat)
- Adjusted EBITDA: $168 million vs analyst estimates of $123.2 million (19.1% margin, 36.4% beat)
- The company lifted its revenue guidance for the full year to $3.65 billion at the midpoint from $3.55 billion, a 2.8% increase
- Management reiterated its full-year Adjusted EPS guidance of $1.90 at the midpoint
- Operating Margin: 7.2%, up from 4.4% in the same quarter last year
- Constant Currency Revenue fell 4.4% year on year (-1.9% in the same quarter last year)
- Market Capitalization: $3.19 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Dentsply Sirona’s Q1 Earnings Call
- Elizabeth Anderson (Evercore ISI) asked for detail on tariff impacts and mitigation strategies. CEO Simon Campion explained tariffs represent a $0.10 EPS impact and that mitigation options are being explored, including shifting manufacturing and building inventory.
- Michael Cherny (Leerink Partners) queried the trajectory of the orthodontic business and SureSmile’s competitive positioning. Campion emphasized the need to improve user experience and highlighted plans to re-engage more actively with orthodontists.
- Dylan Finley (UBS) inquired about EBIT margin sustainability and quarterly progression. Campion stated Q1 margins are indicative for the year, with a focus on SG&A discipline but acknowledged seasonality and normal fluctuations.
- Jon Block (Stifel) asked why strong Q1 results did not lead to higher annual guidance. Campion described the approach as prudent given macroeconomic uncertainty and stable but cautious end-market trends.
- Jason Bednar (Piper Sandler) probed U.S. dental market sentiment and Germany’s growth durability. Campion reported stable patient traffic and treatment acceptance in the U.S., and expressed confidence in Germany’s performance, with ongoing focus on expanding improvements to other regions.
Catalysts in Upcoming Quarters
In coming quarters, our analyst team will monitor (1) the impact of further tariff developments and the effectiveness of mitigation strategies, (2) the pace of DS Core digital platform adoption and monetization, and (3) evidence of sustained operational improvements in underperforming U.S. segments. Progress on supply chain optimization and customer experience enhancements will also be key to evaluating execution against the company’s strategy.
Dentsply Sirona currently trades at $16, up from $13.69 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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