Dentsply (XRAY) Reliance on International Sales: What Investors Need to Know

Zacks Equity Research

Tue, May 13, 2025, 7:16 AM 4 min read

Have you assessed how the international operations of Dentsply International (XRAY) performed in the quarter ended March 2025? For this dental products manufacturer, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

While delving into XRAY's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The recent quarter saw the company's total revenue reaching $879 million, marking a decline of 7.8% from the prior-year quarter. Next, we'll examine the breakdown of XRAY's revenue from abroad to comprehend the significance of its international presence.

Unveiling Trends in XRAY's International Revenues

During the quarter, Europe contributed $362 million in revenue, making up 41.18% of the total revenue. When compared to the consensus estimate of $356.44 million, this meant a surprise of +1.56%. Looking back, Europe contributed $408 million, or 45.08%, in the previous quarter, and $376 million, or 39.45%, in the same quarter of the previous year.

Rest of World accounted for 24.46% of the company's total revenue during the quarter, translating to $215 million. Revenues from this region represented a surprise of +12.67%, with Wall Street analysts collectively expecting $190.83 million. When compared to the preceding quarter and the same quarter in the previous year, Rest of World contributed $238 million (26.30%) and $221 million (23.19%) to the total revenue, respectively.

Projected Revenues in Foreign Markets

It is projected by analysts on Wall Street that Dentsply will post revenues of $927.9 million for the ongoing fiscal quarter, a decline of 5.7% from the year-ago quarter. The expected contributions from Europe and Rest of World to this revenue are 40.5% and 22.5%, translating into $375.96 million and $208.34 million, respectively.

For the full year, the company is expected to generate $3.63 billion in total revenue, down 4.3% from the previous year. Revenues from Europe and Rest of World are expected to constitute 40.4% ($1.47 billion) and 22.7% ($823.78 million) of the total, respectively.

The Bottom Line

Relying on global markets for revenues presents both prospects and challenges for Dentsply. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

Dentsply, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Dentsply's Recent Stock Market Performance

Over the preceding four weeks, the stock's value has appreciated by 28.1%, against an upturn of 9.1% in the Zacks S&P 500 composite. In parallel, the Zacks Medical sector, which counts Dentsply among its entities, has appreciated by 1.4%. Over the past three months, the company's shares have seen a decline of 8.6% versus the S&P 500's 3.1% decline. The sector overall has witnessed a decline of 8.7% over the same period.

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DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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