Close

Danaher's Results Positive for Sirona (SIRO), Negative for DENTSPLY (XRAY) - Stifel

January 27, 2015 11:34 AM EST
Get Alerts DHR Hot Sheet
Price: $249.72 +0.38%

Rating Summary:
    24 Buy, 11 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE

Stifel analyst Jonathan Block commented on the implications for dental supply stocks after Danaher's (NYSE: DHR) fourth quarter results, which showed its dental segment reported 4Q14 core revenue growth (ex-currency and acquisitions) of +2.5% y/y, a modest acceleration from the +2.0% reported in both 3Q14 and 2Q14 but a bit below the +3.0% growth in 2013.

  • DENTSPLY (NASDAQ: XRAY) (Hold). Danaher’s Implant Direct business grew “double digits”, which we view as a negative for DENTSLPLY as we believe this is reflective of ongoing share gains from lower-end implant offerings, relative to XRAY’s premium implant segment. Moreover, if distributors were working down inventory levels, this could also have negative implications for XRAY in 4Q.
  • Sirona (NASDAQ: SIRO) (Buy) We believe the Danaher results are largely positive for Sirona as it has no consumable exposure and has been investing in the higher growth markets such as China. Moreover, Danaher’s imaging commentary is a positive, as practices continue to invest in high-end equipment.
  • Patterson (NASDAQ: PDCO) (Hold) / Henry Schein (NASDAQ: HSIC) (Hold). We view the consumable commentary related to the overall low growth U.S. environment as a modest negative for the distributors. However, the negative impact to DHR’s results from inventory drawdowns does not necessarily reflect end-user demand, and may have no bearing on the upcoming sales results for HSIC and PDCO.
  • Align (NASDAQ: ALGN) (Buy). Align is scheduled to report 4Q14 earnings this Thursday (1/29) after the market close, and we believe Danaher’s comments on the U.S. market appear to support our tepid N.A. GP survey findings that we published last week. That said, at $57.47, the stock is down 8% (relative to S&P) from mid-January and we believe already reflects some expectations for modest N.A. GP growth.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments

Related Entities

Standard & Poor's, Earnings