Dentsply Sirona shares up on Q3 beat

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Dentsply Sirona

Shares in Dentsply Sirona (NSDQ:XRAY) rose today after the medical device maker beat expectations on Wall Street with its 3rd quarter earnings release.

The York, Penn.-based company posted profits of $90.5 million, or 39¢ per share, on sales of $1 billion for the 3 months ended September 30, seeing its bottom line shrink by 2% while its sales grew 5.8% compared with the same period during the previous year.

After adjusting to exclude 1-time items, earnings per share were 70¢, well ahead of the 65¢ consensus on Wall Street, where analysts were expecting to see revenue of $981.7 million.

“Our solid third quarter reflects the excitement around Dentsply Sirona World and strength in our chairside consumables business. We expect our momentum to continue with accelerating sales and earnings growth in the fourth quarter. Dentsply Sirona is well positioned as the market leader and innovator in the industry with significant opportunities. We are focused on accelerating the integration to drive operating leverage and faster top line growth. I am confident that we have the talent, the leadership and the right strategy to create significant value for years to come,” CEO Mark Thierer said in a prepared statement.

The company narrowed its earnings per share guidance for the rest of 2017, expecting it to be between $2.65 and $2.75 per diluted share.

Shares in Dentsply Sirona are up 6.4% so far today, at $65.08 as of 1:08 p.m. EDT.

Late last month, Dentsply Sirona was awarded $6.8 million in damages in a trade secret suit after the ex-engineer accused of stealing the designs stopped participating in the legal proceedings, according to court documents.

Dentsply Sirona wins $7m in trade secret case after accused ex-engineer ducks out

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Dentsply Sirona

Dentsply Sirona (NSDQ:XRAY) was awarded $6.8 million in damages in a trade secret suit after the ex-engineer accused of stealing the designs stopped participating in the legal proceedings, according to court documents.

Former engineer Jian Lu was accused of stealing trade secrets related to a 3- imaging system for the company’s Apollo DI device, according to court documents.

Lu left the company in 2013 and reportedly took with him trade secrets, including technical documents, copyrighted software and a pre-production model of the imaging system to develop a competing product, according to the documents.

A short time after the case began, however, Lu disconnected from the proceedings, court documents report.

“Despite multiple court orders, Lu failed to respond to Plaintiff’s discovery requests, supplied no financial documentation for his businesses, and stopped participating in the lawsuit. Shortly thereafter, Plaintiffs filed a Motion for Summary Judgement. Lu did not oppose the Motion and all maters in Plaintiffs’ Request for Admissions were deemed admitted. Accordingly, the Court granted the Motion for Summary Judgement in favor of Plaintiffs on all four claims,” minutes from the case, recorded October 19, read.

The court granted Dentsply Sirona a total sum of $6.8 million in damages, which includes approximately $6.7 million in damages for misappropriation of trade secrets, breach of contract and conversion claims and an additional $150,000 for a copyright infringement claim, according to court documents.

Earlier this month, Dentsply Sirona cleared the deck of its upper management, ousting its chairman, CEO and COO, appointing an interim chief executive and promoting from within for the interim operating chief role.

Dentsply Sirona shares steady despite Q2 sales miss

Shares in Dentsply Sirona (NSDQ:XRAY) have fallen slightly today after the medical device maker met earnings per share expectations but missed sales consensus on Wall Street with its 2nd quarter earnings report.

The York, Penn.-based company posted losses of $1.1 billion, or $4.58 per share on sales of $992.7 million for the 3 months ended June 30, seeing a massive 1096% swing from profits to losses while sales shrunk 2.9% compared with the same period during the previous year.

Adjusted to exclude 1-time items, earnings per share were 65¢, just in line with the 65¢ consensus on Wall Street, where analysts were expecting to see sales of $1 billion.

“Our results were impacted by a number of factors, the largest of which are headwinds associated with Patterson reducing its inventory in North America and the transition of North American distribution. Year to date, operational execution has not met our expectations. Our lower outlook reflects the underperformance in the first half of the year and some of those challenges persisting in the back half of the year. In September, we should begin to benefit from the expanded distribution of our equipment in North America which should drive growth in the back half of this year and beyond. As we work through the distribution transition and integration initiatives, we are strengthening our foundation for the future. We believe that this should translate into more consistent growth and strong double digit earnings growth in the back half of the year creating momentum exiting the year going into 2018,” CEO Jeffrey Slovin said in a press release.

The company updated its earnings per share guidance for the entire years expecting to post between $2.65 and $2.75 per diluted share.

Shares in Dentsply Sirona have dipped 0.8% so far today, at $55.03 as of 2:49 p.m. EDT.

See the best minds in medtech live at DeviceTalks Boston on Oct. 2.

The post Dentsply Sirona shares steady despite Q2 sales miss appeared first on MassDevice.