What The DENTSPLY SIRONA Inc. (XRAY) History Tells Us About Likely Reaction To Earnings

112 days have passed by since the last earnings report for DENTSPLY SIRONA Inc. (NASDAQ:XRAY) and the new quarterly results look set to arrive in 98 days. The shares of XRAY at the moment are trading at a volume of 1.03 million, which compares with its normal daily standard volume of 1.59 million shares. This has led to the shares of the company advancing by 0.83%, currently exchanging hands at $57.1 a share. XRAY stock has been up by $3.05 (-5.07%) ever since it reached its 52-week high of $60.15 back in November 07, 2019. It has progressed above its 50-day moving average of $54.78 and is up 1.91% over the past week. The stock has added 4.2% since the last one arrived so the question here is that will the upbeat trend in that time frame continue leading up to its next earnings release, or is the XRAY share price due for a correction?

DENTSPLY SIRONA Inc. (XRAY) Forecasts And Latest Quarter Earnings

Ahead of their fiscal fourth-quarter to be released on Friday, Feb 28, 2020, 17 analysts who are covering the company are estimating that it will record a profit of $0.74 per share, with analysts having different outlooks from $0.69 to $0.78. The current agreed outlook, when compared to the profit recorded last year, is at $0.58 a share, thus an increase of 27.59% is expected. The profit view for a complete financial year for DENTSPLY SIRONA Inc. is expected to be around $2.46 in current year, a decline of nearly 22.39% from last year which was $2.01.

Let’s now look at their sales section, XRAY’s revenue is estimated to be $1.06B, a figure which is more than the $1.06B recorded for Q4 last year. Their sequential sales though are expected to move versus Q3’s $962M. Their full-year outlook is pegged at $4B, implying that there would be an increase of 0.25% over the $3.99B they recorded last year in revenue. DENTSPLY SIRONA Inc. is projected to get sales lifted by 3.5% in the next quarter, with a revenue target of $4.14B.

Analyzing The Earnings History Of DENTSPLY SIRONA Inc. (NASDAQ:XRAY)

In the past few years, the XRAY stock has been known to miss the Wall Street’s earnings projection. The company missed 25% of the time, according to the data pulled on their earnings, was able to meet predictions on 0 occasions and topped expectations 9 times. Looking at the past trend, the price of DENTSPLY SIRONA Inc. shares had risen following the release of their earnings in 19 of the last 37 quarters.

Looking back, here is how DENTSPLY SIRONA Inc. (XRAY) stock reacted to earnings misses and beats. It gave investors reason to cast doubts with the price going down after 2 of the last four earnings reports. The shares of DENTSPLY SIRONA Inc. recorded -1.07%, 6.89%, 17.65% and -2.01%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were -1.86%, 6.78%, 15.47% and 0.49%. Their post-earnings price movements have resulted in an average increase of 5.37% and an average increase of 5.22% in DENTSPLY SIRONA Inc. on next day and 7th day, sequentially. XRAY’s one month stock performance led to its shares rising by 4.96% with a return of 54.66% witnessed over the last 52 weeks.

The higher number of analysts has assigned a buy or better ratings (9) on the DENTSPLY SIRONA Inc. stock, while 7 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $62.07. This price target implies potential upside of 8.7 percent over the next 12 months based on the current share price.

DENTSPLY SIRONA Inc. (XRAY) Post Earnings Announcement Drift (PEAD)

Back on August 02, 2019, DENTSPLY SIRONA Inc. (NASDAQ:XRAY) released its Q3 results, in which it recorded EPS of $0.57 that exceeded consensus estimates of $0.5. After the earnings were reported, the price of stock kicked off the session at $49.12 and remained in a range of $50.5 to $53.08 on the first day. The shares were priced at $52.79 at the close with a total volume of shares being 4252524.

On May 03, 2019, the Q2 earnings report was disclosed with EPS of $0.66. This was above the estimation of $0.63 per share. The stock’s price was in the range of between $53.45 and $55.88 on the first-day post announcement, after opening the day at $53.3. The session came to close at $55.05 and there was a total volume of 4408686 shares.

March 01, 2019 was the day when its Q1 results were unveiled. The earnings came in at $0.49, beating the projected $0.39 per share. The very next day, price of stock opened at $45.87 while staying in a range of $46.99 to $49.45. At the end, it moved to $49.13 a total volume of shares been 9985894.

In the year-ago Q4 earnings on November 08, 2018, the company saw profit per share of $0.58. That was better than the $0.54 analysts had expected. Company’s share price started at $35.07 on the first full trading day post-earning and then exchanged hands between $36.85 and $38.27 throughout the session. The closing price of $36.06 came on the back of 8523772 shares in volume.