Sirona Dental Q1 Results Beat Estimates - Update

(RTTNews) - Sirona Dental Systems Inc. (SIRO) Friday said first-quarter profit increased from the prior year, as revenues improved across major regions and segments. Both adjusted earnings and revenues beat Wall Street estimates.

Net income attributable to the company increased to $44.17 million from $38.30 million in the previous year. Earnings per share grew to $0.79 from $0.68.

Adjusted earnings per share totaled $0.96, while it was $0.94 last year. On average, 15 analysts polled by Thomson Reuters expected earnings of $0.92 per share for the quarter. Analysts' estimates typically exclude special items.

Sirona noted that non-GAAP adjusted earnings per share growth was impacted by unfavorable developments in foreign currencies as well as a difficult comparable resulting from a $4.4 million patent infringement settlement in last year's first quarter.

Revenue improved to $298.73 million from $272.40 million. Wall Street expected revenues of $296.32 million.

While revenue grew 9.7 percent from last year, the increase was 6.3 percent on a constant currency basis.

Segment-wise, revenue from Instruments increased 23.9 percent, benefiting from the increased capacity of the new state-of-the-art manufacturing facility. CAD/CAM Systems revenues increased 10.7 percent, reflecting strong demand.

Revenues generated by the Imaging Systems segment increased 9.2 percent and Treatment Centers increased revenues by 1.7 percent.

Revenue in the U.S. increased 12.2 percent, amid strong demand for Imaging and CAD/CAM products. Revenues outside the U.S. advanced 8.4 percent, driven by Europe, excluding Germany, and other international markets.

Jeffrey Slovin, CEO, said, "I am pleased to report record quarterly revenues and earnings. Our strong performance was geographically broad based. The U.S. grew 12.2%, driven by strength in both CAD/CAM and Imaging. Outside of Germany, our international business grew 8.3% on our constant currency basis."

Looking ahead, the company continues to expect fiscal 2014 constant currency revenue growth of 4 to 6 percent, and non-GAAP adjusted earnings per share in the range of $3.60 to $3.70. Analysts expect earnings of $3.67 per share for the quarter.

SIRO closed up 2.9 percent on Thursday at $71.86.