DENTSPLY International Second Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component DENTSPLY International Inc. (NASDAQ:XRAY) will unveil its latest earnings on Tuesday, July 31, 2012. DENTSPLY International manufactures and distributes dental equipment and products, including artificial teeth and dental consumable products.

DENTSPLY International Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 56 cents per share, a rise of 1.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 57 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 11.4% versus last year to $2.24.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported profit of 52 cents per share versus a mean estimate of net income of 52 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by one cent.

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A Look Back: In the first quarter, profit fell 22.9% to $53.3 million (37 cents a share) from $69.1 million (48 cents a share) the year earlier, meeting analyst expectations. Revenue rose 25.6% to $716.4 million from $570.5 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 22.7% in revenue from the year-earlier quarter to $747.9 million.

Stock Price Performance: Between April 30, 2012 and July 25, 2012, the stock price fell $5.23 (-12.7%), from $41.06 to $35.83. The stock price saw one of its best stretches over the last year between October 17, 2011 and October 24, 2011, when shares rose for six straight days, increasing 8.6% (+$2.77) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.8% in the second quarter of the last fiscal year, 14.4% in the third quarter of the last fiscal year and 29.9% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 4.8% in the third quarter of the last fiscal year, by 40.1% in the fourth quarter of the last fiscal year and again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.41 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.4 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 10.5% to $1.12 billion while liabilities rose by 9.7% to $794.5 million.

Analyst Ratings: With seven analysts rating the stock a buy, one rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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