Shares of dental products giant Dentsply Sirona Inc. (XRAY) plummeted over 28% on Thursday, after the company lowered its full-year revenue and earnings guidance for 2024, citing several headwinds and market pressures.
While Dentsply Sirona reported better-than-expected third-quarter earnings of $0.50 per share, beating analysts' estimates of $0.47, the company's revised outlook for the full fiscal year overshadowed the positive earnings surprise.
The company now expects net sales in the range of $3.79 billion to $3.83 billion, down from its previous guidance of $3.86 billion to $3.90 billion. Additionally, Dentsply Sirona cut its adjusted earnings per share forecast to $1.82 to $1.86, compared to the earlier range of $1.96 to $2.02.
The significant downward revision in guidance was driven by several factors, including market pressures impacting the company's U.S. equipment business, legislative changes affecting the direct-to-consumer aligner business model, and the voluntary suspension of sales, marketing, and shipments of Byte Aligners and Impression Kits due to regulatory issues.
Analysts expressed concerns over the company's ability to maintain growth momentum, citing ongoing challenges in the market, increased competition in the implant segment, and weaker demand for lab materials. The guidance cut and the uncertainty surrounding the company's operations have raised doubts among investors, leading to the steep sell-off in Dentsply Sirona's stock.
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