Looking back on dental equipment & technology stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Align Technology (NASDAQ: ALGN) and its peers.

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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.

While some dental equipment & technology stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.8% since the latest earnings results.

Weakest Q2: Align Technology (NASDAQ: ALGN)

Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ: ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.

Align Technology reported revenues of $1.01 billion, down 1.6% year on year. This print fell short of analysts’ expectations by 4.8%. Overall, it was a disappointing quarter for the company with a miss of analysts’ sales volume estimates and a significant miss of analysts’ EPS estimates.

Align Technology delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 30.4% since reporting and currently trades at $142.29.

Read our full report on Align Technology here, it’s free.

Best Q2: Envista (NYSE: NVST)

Uniting more than 30 trusted brands including Nobel Biocare, Ormco, and DEXIS under one corporate umbrella, Envista Holdings (NYSE: NVST) is a global dental products company that provides equipment, consumables, and specialized technologies for dental professionals.

Envista reported revenues of $682.1 million, up 7.7% year on year, outperforming analysts’ expectations by 7%. The business had a stunning quarter with a solid beat of analysts’ constant currency revenue estimates and a solid beat of analysts’ full-year EPS guidance estimates.

Envista delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 12.3% since reporting. It currently trades at $21.24.

Is now the time to buy Envista? Access our full analysis of the earnings results here, it’s free.

Henry Schein (NASDAQ: HSIC)

With a vast inventory of over 300,000 products stocked in distribution centers spanning more than 5.3 million square feet worldwide, Henry Schein (NASDAQ: HSIC) is a global distributor of healthcare products and services primarily to dental practices, medical offices, and other healthcare facilities.

Henry Schein reported revenues of $3.24 billion, up 3.3% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 1.7% since the results and currently trades at $68.98.

Read our full analysis of Henry Schein’s results here.

Dentsply Sirona (NASDAQ: XRAY)

With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ: XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide.

Dentsply Sirona reported revenues of $936 million, down 4.9% year on year. This result was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also produced a narrow beat of analysts’ full-year EPS guidance estimates but a miss of analysts’ constant currency revenue estimates.

Dentsply Sirona had the slowest revenue growth among its peers. The stock is up 4.8% since reporting and currently trades at $14.31.

Read our full, actionable report on Dentsply Sirona here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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