Q2 2024 Earnings Summary
Reported on Feb 18, 2025 (Before Market Open)
Pre-Earnings Price$26.78Last close (Jul 30, 2024)
Post-Earnings Price$26.45Open (Jul 31, 2024)
Price Change
$-0.33(-1.23%)
- Dentsply Sirona expects improved performance in its Connected Technology Solutions (CTS) segment in the second half of 2024, driven by upcoming product launches, improved retail demand in imaging, the DS World event in September, favorable Q4 seasonality, and signs of improvement in key markets like Germany.
- The company reported a strong quarter in scanner sales, particularly with Primescan and Primescan Connect, which is crucial for unlocking value in other parts of their portfolio such as chairside aligners and implants. This strength in digital offerings positions them well for future growth as the market normalizes.
- Dentsply Sirona is on track to deliver the two-thirds of their EPS growth plan that is within their control and is taking additional actions to drive towards their $3 EPS target by 2026, demonstrating a strong commitment to shareholder value despite macroeconomic challenges.
- Continued macroeconomic headwinds are impacting demand for capital equipment, particularly in the CTS segment. Executives noted that it could take three or four interest rate cuts before seeing meaningful improvement in dental equipment purchases. This prolonged pressure may affect sales and profitability in the near term.
- The CTS segment is experiencing significant declines, with organic sales down 16% in the quarter. Unfavorable product mix shifts toward lower-priced and lower-margin products like Primescan Connect are impacting revenues and margins. This trend may continue to pressure the company's overall financial performance.
- Growth expectations for Byte have been reduced from over 20% to approximately 15% for the full year due to legislative changes impacting the direct-to-consumer aligner market in certain states. These regulatory challenges could limit growth in this important segment and increase operational complexities.