Q1 2024 Earnings Summary
Reported on Feb 18, 2025 (Before Market Open)
Pre-Earnings Price$30.18Last close (May 1, 2024)
Post-Earnings Price$29.58Open (May 2, 2024)
Price Change
$-0.60(-1.99%)
- Orthodontics Business Expected to Deliver Over 20% Growth in the Second Half of 2024: DENTSPLY SIRONA anticipates strong performance in its Orthodontics segment, expecting double-digit growth in aligners, with sales projected to exceed 20% growth in the back half of the year. This growth is driven by market share gains, new product offerings, and geographic expansion into international markets like Japan and Brazil.
- Investments in Implants Business Showing Positive Signs with Growth Expected in H2 2024: The company is making substantial investments in its implants business, including expanding the team, providing tools and training, and increasing clinical education efforts. DENTSPLY SIRONA expects to begin posting growth in the implants business in the back half of 2024, aiming to reach market growth by 2026.
- Proactive Cost Control Measures to Enhance Profitability in 2024: DENTSPLY SIRONA is implementing incremental cost control measures to enhance profitability, which are expected to positively impact the bottom line in 2024. These actions are in addition to the company's ongoing efficiency reductions and are aimed at offsetting any potential revenue softness.
- The Connected Technology Solutions (CTS) segment, particularly imaging equipment, is experiencing significant declines, with organic sales down close to 6% in Q1 and expectations of further declines in Q2 due to unfavorable macroeconomic conditions and increased competition. Management expects the challenging environment to continue, which could impact overall revenue growth.
- The company's growth projections heavily rely on the successful launch and execution of new products in the second half of the year to offset tough comparisons and earlier underperformance. This dependence poses risks if the new products do not perform as expected or if execution falters.
- Additional cost-cutting measures may be necessary due to ongoing revenue softness and top-line pressure. Management indicated they will implement further cost controls if revenue challenges persist, signaling continuing difficulties in achieving growth and potential impacts on future investment in growth initiatives.