Q4 2023 Earnings Summary
Reported on Feb 18, 2025 (Before Market Open)
Pre-Earnings Price$33.30Last close (Feb 28, 2024)
Post-Earnings Price$34.23Open (Feb 29, 2024)
Price Change
$0.93(+2.79%)
- Byte, Dentsply Sirona's direct-to-consumer aligner brand, is expected to grow over 20% in 2024, benefiting from competitive dynamics and market share gains. The company anticipates Byte to continue as a faster-growing part of their portfolio beyond 2024, focusing on profitable growth. ,
- The company remains confident in achieving its $3 adjusted EPS target by 2026, driven by expected organic growth returning to 4%-6% starting in 2025, benefits from transformation initiatives such as supply chain optimization and ERP modernization, and increasing profitability in their Aligners business. , ,
- Improvements in execution and ongoing share gains in Orthodontics are expected to contribute to organic growth, with the company anticipating a return to market growth in its Implants business by 2026. Investments in clinical education and salesforce adjustments are expected to drive better performance. ,
- The company's growth projections are heavily dependent on a return to organic sales growth of 4% to 6% starting in 2025, which may not materialize as expected. The current guidance for 2024 is only flat to up 1.5% organic sales growth, indicating ongoing challenges. This reliance on improved macroeconomic conditions poses a risk to achieving long-term targets.
- The U.S. implants business is still declining, and while the company expects it to return to growth in the second half of 2024, this recovery is uncertain. Continued weakness in this key segment could negatively impact overall performance.
- Equipment sales are declining, particularly in imaging and instruments, with ongoing pressure in markets like Germany and Australia. The company acknowledges that this trend is expected to continue into 2024, which could hinder revenue growth and margin expansion efforts.