Let’s dig into the relative performance of Align Technology (NASDAQ:ALGN) 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 13.9% since the latest earnings results.
Founded in 1997, Align Technology (NASDAQ:ALGN) specializes in clear aligner therapy and digital dental solutions, offering products like the Invisalign system for teeth straightening and iTero scanners for precise digital imaging.
Align Technology reported revenues of $995.2 million, up 4% year on year. This print was in line with analysts’ expectations, but overall, it was a decent quarter for the company with EPS in line with analysts’ estimates.
Commenting on Align’s Q4’24 and 2024 results, Align Technology President and CEO Joe Hogan said, “I am pleased to report that Q4 total revenues, Clear Aligner volumes, and Systems and Services revenues were in line with our Q4 outlook and both GAAP and non-GAAP operating margins were better than our Q4 outlook.”
Align Technology Total Revenue
The stock is down 21% since reporting and currently trades at $170.99.
Spun off from Danaher in 2019, Envista Holdings (NYSE:NVST) designs, manufactures, and markets a wide range of dental solutions, including diagnostic tools, implants, orthodontics, and consumables.
Envista reported revenues of $652.9 million, up 1.1% year on year, outperforming analysts’ expectations by 0.8%. The business performed better than its peers, but it was unfortunately a slower quarter with a significant miss of analysts’ full-year EPS guidance estimates.
Envista Total Revenue
Envista achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 14.5% since reporting. It currently trades at $17.61.
Founded in 1899, Dentsply Sirona (NASDAQ:XRAY) is a leading manufacturer of dental equipment, consumables, and technology solutions.
Dentsply Sirona reported revenues of $905 million, down 10.6% year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.
Dentsply Sirona delivered the slowest revenue growth in the group. As expected, the stock is down 13.2% since the results and currently trades at $16.35.
Founded in 1932, Henry Schein (NASDAQ:HSIC) is a distributor of healthcare products and services, offering a broad portfolio of medical, dental, and veterinary supplies.
Henry Schein reported revenues of $3.19 billion, up 5.8% year on year. This print came in 2.3% below analysts’ expectations. Overall, it was a softer quarter as it also produced a miss of analysts’ full-year EPS guidance estimates and a slight miss of analysts’ organic revenue estimates.
Henry Schein achieved the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 6.9% since reporting and currently trades at $72.28.
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