NEW YORK - Envista Holdings Corp . (NYSE:NVST) reported a decline in adjusted earnings for the first quarter of 2024, missing analyst estimates and sending its shares down 7%.
The company announced an adjusted EPS of $0.26, which fell short of the consensus estimate of $0.32. Revenue for the quarter was $623.6 million, also below the expected $634.83 million.
Compared to the same period last year, the company's adjusted net income decreased from $67.8 million, or $0.38 per diluted share, to $45.8 million, or $0.26 per diluted share. Despite a slight 0.4% increase in core sales YoY, adjusted EBITDA dropped from $114.0 million in the first quarter of 2023 to $87.2 million.
CEO Amir Aghdaei commented on the challenges faced in the quarter, highlighting the company's strategic investments aimed at future growth.
"Our first quarter results proved challenging as we continue to prioritize long-term investments to accelerate growth and drive profitability," said Aghdaei. He also noted the growth in the Spark business and the stabilization of the consumables business.
Additionally, Envista announced a leadership change, with Paul Keel taking over as CEO effective May 1, 2024. Aghdaei expressed confidence in Keel's ability to lead the company's next development phase, emphasizing the progress made in creating a company focused on digitizing, personalizing, and democratizing the dental industry.
Keel also shared his enthusiasm for the role, stating, "I am excited to build on Envista's strong foundation and look forward to working with the Envista team to serve all our stakeholders – patients, customers, colleagues, communities, and our shareholders."
The stock's 7% drop reflects investor reaction to the earnings miss, signaling concern over the company's short-term performance despite management's focus on long-term strategic goals. Envista's guidance for the upcoming quarters and fiscal year was not provided in the press release, leaving investors to weigh the current results against the backdrop of the company's ongoing strategic initiatives.
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