Why Are Dentsply Sirona (XRAY) Shares Soaring Today

What Happened?

Shares of dental products company Dentsply Sirona (NASDAQ:XRAY) jumped 13.4% in the afternoon session after the company reported mixed fourth-quarter results, with investors seemingly focusing on a revenue beat while overlooking a weak outlook for the upcoming year. 

The dental products company posted fourth-quarter revenue of $961 million, growing 6.2% year-on-year and surpassing Wall Street's expectations. However, the report also contained negative points, as adjusted earnings per share of $0.27 missed analysts' estimates. Furthermore, Dentsply Sirona provided a disappointing forecast for the full year, with both its revenue and adjusted EPS guidance falling below consensus expectations. The positive stock reaction suggests that the market was encouraged by the better-than-expected sales in the reported quarter, choosing to ignore the more cautious forward-looking statements from management.

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What Is The Market Telling Us

Dentsply Sirona’s shares are quite volatile and have had 17 moves greater than 5% over the last year. But moves this big are rare even for Dentsply Sirona and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock dropped 13.4% on the news that it reported disappointing third-quarter results, highlighted by a significant earnings miss and a lowered forecast for the full year. While revenue of $904 million declined 4.9% year-over-year, it narrowly beat analysts' expectations. The main concern for investors was profitability, as adjusted earnings per share came in at $0.37, missing Wall Street's consensus estimate of $0.45 and falling sharply from $0.50 in the same quarter last year. The company's operating margin was negative 24.1%, underscoring its struggles with costs. Compounding the negative news, management lowered its full-year adjusted EPS guidance to a midpoint of $1.60. The combination of missing current earnings estimates and reducing future expectations prompted the negative reaction from investors.

Dentsply Sirona is up 27.5% since the beginning of the year, but at $14.37 per share, it is still trading 16.2% below its 52-week high of $17.15 from February 2025. Investors who bought $1,000 worth of Dentsply Sirona’s shares 5 years ago would now be looking at an investment worth $240.58.

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