Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Envista (NYSE: NVST) and its peers.
The dental equipment and technology industry encompasses companies that manufacture orthodontic products, dental implants, imaging systems, and digital tools for dental professionals. These companies benefit from recurring revenue streams tied to consumables, ongoing maintenance, and growing demand for aesthetic and restorative dentistry. However, high R&D costs, significant capital investment requirements, and reliance on discretionary spending make them vulnerable to economic cycles. Over the next few years, tailwinds for the sector include innovation in digital workflows, such as 3D printing and AI-driven diagnostics, which enhance the efficiency and precision of dental care. However, headwinds include economic uncertainty, which could reduce patient spending on elective procedures, regulatory challenges, and potential pricing pressures from consolidated dental service organizations (DSOs).
The 4 dental equipment & technology stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.
Luckily, dental equipment & technology stocks have performed well with share prices up 18.3% on average since the latest earnings results.
Envista (NYSE: NVST)
Uniting more than 30 trusted brands including Nobel Biocare, Ormco, and DEXIS under one corporate umbrella, Envista Holdings (NYSE: NVST) is a global dental products company that provides equipment, consumables, and specialized technologies for dental professionals.
Envista reported revenues of $616.9 million, down 1.1% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
"In the first quarter, Envista delivered results in line with our expectations building on the momentum established across the second half of 2024," said Paul Keel, CEO.
Interestingly, the stock is up 24.9% since reporting and currently trades at $20.39.
Is now the time to buy Envista? Access our full analysis of the earnings results here, it’s free.
Best Q1: Dentsply Sirona (NASDAQ: XRAY)
With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ: XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide.
Dentsply Sirona reported revenues of $879 million, down 7.8% year on year, outperforming analysts’ expectations by 3.2%. The business had a stunning quarter with an impressive beat of analysts’ constant currency revenue and EPS estimates.
Dentsply Sirona achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 20.3% since reporting. It currently trades at $16.47.
Is now the time to buy Dentsply Sirona? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Henry Schein (NASDAQ: HSIC)
With a vast inventory of over 300,000 products stocked in distribution centers spanning more than 5.3 million square feet worldwide, Henry Schein (NASDAQ: HSIC) is a global distributor of healthcare products and services primarily to dental practices, medical offices, and other healthcare facilities.
Henry Schein reported revenues of $3.17 billion, flat year on year, falling short of analysts’ expectations by 2%. It was a slower quarter as it posted a miss of analysts’ organic revenue estimates.
Henry Schein delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 14.3% since the results and currently trades at $74.67.
Read our full analysis of Henry Schein’s results here.
Align Technology (NASDAQ: ALGN)
Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ: ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.
Align Technology reported revenues of $979.3 million, down 1.8% year on year. This number was in line with analysts’ expectations. It was a strong quarter as it also logged a solid beat of analysts’ sales volume estimates and a decent beat of analysts’ EPS estimates.
The stock is up 13.7% since reporting and currently trades at $196.85.
Read our full, actionable report on Align Technology here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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