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DENTSPLY SIRONA to Post Q2 Earnings: What's in Store for the Stock?

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Key Takeaways

  • {\"0\":\"XRAY\'s Imaging segment gains from Orthophos SL and Primescan 2 relaunches might have support Q2 growth.\",\"1\":\"Byte suspension likely continued to be a 200bps headwind on XRAY\'s organic sales, limiting overall progress.\",\"2\":\"XRAY\'s cost initiatives and SKU rationalization may have stabilized gross margins, aiding Q/Q Q2 growth.\"}

DENTSPLY SIRONA Inc. (XRAY - Free Report) is scheduled to release second-quarter 2025 results on Aug. 7, before the opening bell.

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate. It delivered an average earnings surprise of 2.73% in the past four quarters.

XRAY’s Q2 Estimates

The Zacks Consensus Estimate for revenues is pegged at $851.6 million. The consensus mark for earnings is pinned at 29 cents per share.

Factors to Note Ahead of XRAY’s Q2 Results

Dentsply Sirona heads into second-quarter earnings release amid a complex business recalibration, navigating both bright spots in product innovation and persistent macroeconomic pressures. A notable positive is the sustained global momentum in Imaging, bolstered by the relaunch of Orthophos SL and the introduction of Primescan 2. These efforts might have revitalized scanner volumes, particularly in Europe and APAC, where execution improvements likely translated into growth above expectations. Imaging’s resilience might have been a highlight during the to-be-reported quarter.

In Orthodontics, SureSmile is expected to post another quarter of stable global growth, potentially driven by robust gains in Europe. However, U.S. performance is likely to have remained challenged due to softer discretionary spending and lingering competitive pressures. The company's strategic redeployment of Byte’s demand generation and software resources to SureSmile might have aided growth, but Byte’s weakness is likely to have continued to weigh on top-line performance.

The suspension of Byte aligner sales, coupled with associated customer refunds, must have remained a substantial headwind, with Byte expected to negatively impact organic sales by approximately two percentage points in 2025. Second-quarter results are also likely to reflect a similar impact.

Essential Dental Solutions benefited from stable patient traffic in first-quarter, especially in Rest of World markets, a similar trend likely to have continued in the second quarter. The adoption of new product launches like the X-Smart Pro+ Motor and Reciproc Blue files in the United States may have driven competitive conversions in soon-to-be-reported quarter. However, softness in elective procedures globally, coupled with lower lab volumes and weak U.S. implant sales, is likely to have capped broader segment growth.

Connected Technology Solutions, including CAD/CAM, continues to face macroeconomic and pricing pressures, particularly in North America. While Germany delivered sequential CAD/CAM growth, U.S. CAD/CAM retail demand remained subdued, even amid the Primescan 2 launch, reflecting cautious capital spending by dental practices. Segmental sales growth is likely to have been weak during the second quarter.

Operationally, Dentsply Sirona’s Phase II transformation activities, including foundational cost initiatives and SKU rationalization, are on track to deliver full run-rate savings by the end of 2025. Gross margins, pressured in the first quarter by Byte-related impacts, are expected to stabilize gradually through the year as volume ramps and restructuring savings flow through, implying a potential improvement in the second quarter.

DENTSPLY SIRONA Inc. Price and EPS Surprise

DENTSPLY SIRONA Inc. Price and EPS Surprise

DENTSPLY SIRONA Inc. price-eps-surprise | DENTSPLY SIRONA Inc. Quote

What the Zacks Model Unveils for XRAY

Our proven model does not conclusively predict an earnings beat for XRAY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.

XRAY’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.99%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

XRAY’s Zacks Rank: DENTSPLY SIRONA currently carries a Zacks Rank #2.

Stocks to Consider

Cardinal Health, Inc. (CAH - Free Report) , Cencora, Inc. (COR - Free Report) and McKesson Corporation (MCK - Free Report) are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.

Cardinal Health has an Earnings ESP of +0.72% and a Zacks Rank of 2. CAH has an estimated long-term growth rate of 10.9%.

Cardinal Health’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.3%.

Cencora has an Earnings ESP of +1.49% and a Zacks Rank #2 at present. COR has an estimated long-term growth rate of 12.80%.

Cencora’searnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%.

McKessonhas an Earnings ESP of +0.14% and a Zacks Rank of 2 at present. MCK has an estimated long-term growth rate of 13.3%.

McKesson’searnings surpassed estimates in three of the trailing four quarters and missed in one, with the average surprise being 3.9%.

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