Let’s dig into the relative performance of Dentsply Sirona (NASDAQ:XRAY) and its peers as we unravel the now-completed Q4 dental equipment & technology earnings season.

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 softer Q4. As a group, revenues missed analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 20% since the latest earnings results.

Weakest Q4: 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 $905 million, down 10.6% year on year. This print fell short of analysts’ expectations by 1.6%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.

"In 2024 we made meaningful progress on our transformational agenda to strengthen our foundation and position the company for long-term success. While we were pleased to see improvement in several areas of the business, Byte, persistent macro pressures and competitive dynamics negatively impacted Q4 and 2024 full year results. Improvements in Q4 included a return to growth in Europe and imaging globally, as well as continued growth of Wellspect Healthcare and SureSmile," said Simon Campion, President and Chief Executive Officer.

Dentsply Sirona delivered the slowest revenue growth of the whole group. The stock is down 26.3% since reporting and currently trades at $13.88.

Read our full report on Dentsply Sirona here, it’s free.

Best Q4: 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 $995.2 million, up 4% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a mixed quarter with EPS in line with analysts’ estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 15.3% since reporting. It currently trades at $183.44.

Is now the time to buy Align Technology? Access our full analysis of the earnings results here, it’s free.

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 $3.19 billion, up 5.8% year on year, falling short of analysts’ expectations by 2.3%. It was a softer quarter as it posted a miss of analysts’ full-year EPS guidance estimates and a slight miss of analysts’ organic revenue estimates.

Henry Schein delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 13.7% since the results and currently trades at $66.99.

Read our full analysis of Henry Schein’s results here.

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 $652.9 million, up 1.1% year on year. This result beat analysts’ expectations by 0.8%. Aside from that, it was a slower quarter as it logged a significant miss of analysts’ full-year EPS guidance estimates.

Envista delivered the biggest analyst estimates beat among its peers. The stock is down 24.6% since reporting and currently trades at $15.53.

Read our full, actionable report on Envista here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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