On November 2, 2023, Dentsply Sirona Inc (XRAY, Financial) announced its financial results for the third quarter of 2023. The company reported net sales of $947 million, which remained flat compared to the same period last year. The GAAP net loss for the quarter was $266 million, or $1.25 per share, compared to a net loss of $1,077 million, or $5.01 per share, in Q3 2022.
Financial Highlights
Despite a challenging external environment that negatively impacted sales results, Dentsply Sirona Inc (XRAY, Financial) delivered an adjusted EBITDA margin of over 18% and 20% adjusted EPS growth. The company's adjusted earnings per diluted share were $0.49 compared to $0.41 in the third quarter of 2022. The improvement in adjusted EPS was primarily driven by cost reductions, leading to adjusted EBITDA margin expansion and a lower tax rate.
Operating cash flow in the third quarter of 2023 was $134 million, compared to $109 million in the prior year, primarily as a result of improved profitability and working capital. The company paid $29 million in dividends, resulting in a total of $236 million returned to shareholders through dividends and share repurchases in the first nine months of 2023.
Company Outlook
Based on the results of the third quarter and recent developments in the macroeconomic environment, Dentsply Sirona Inc (XRAY, Financial) revised its 2023 outlook. The company now anticipates organic sales growth of approximately 1%, with net sales in the range of $3.90 billion to $3.94 billion. Adjusted EPS is expected to be in the range of $1.80 to $1.85.
CEO Commentary
Despite the challenging external environment which negatively impacted sales results in the quarter, we delivered over 18% adjusted EBITDA margin and 20% adjusted EPS growth. Bright spots for the quarter include 10% organic sales growth in our global aligners business, 20% growth in China, and double-digit growth in our U.S. CAD/CAM business," said Simon Campion, President and Chief Executive Officer. "We have made meaningful progress on our transformation initiatives to improve our operational execution and deliver innovative solutions to our customers. We remain confident that these efforts will position us to deliver significant value over the long-term."
Stock Repurchase
The company also announced that it expects to repurchase $150 million of its common stock in the fourth quarter of 2023.
Explore the complete 8-K earnings release (here) from Dentsply Sirona Inc for further details.
