Envista stock soars 25% after saying it will return to growth in Q4

Published 30/10/2024, 21:50
© Reuters.

NEW YORK - Envista Holdings Corp . (NYSE:NVST) reported third-quarter earnings that beat analyst expectations, with the dental products maker's shares surging 25% as the company forecasts a return to growth in the fourth quarter.

The company reported adjusted earnings per share of $0.12 for the quarter ended September 27, 2024, surpassing the analyst estimate of $0.09. Revenue came in at $601 million, above the consensus estimate of $590.36 million, despite a 5.3% YoY decline in core sales.

Envista's third-quarter net income fell to $8.2 million, or $0.05 per diluted share, compared to $21.5 million, or $0.12 per diluted share, in the same period last year. Adjusted EBITDA for the quarter was $54.9 million, down from $123.5 million in Q3 2023.

Despite the YoY declines, investors reacted positively to the company's outlook. Envista maintained its full-year 2024 guidance, expecting core sales growth between -1% and -4%, and adjusted EBITDA margins between 10% and 12%. Notably, the company anticipates a return to growth in the fourth quarter.

"In Q3, Envista delivered results that were in line with expectations with early evidence that our commercial and innovation investments are having a beneficial impact," said Paul Keel, Chief Executive Officer.

Keel added, "We're focusing our attention and resources in three particular areas: accelerating growth, leveraging EBS for sustained operational improvement, and advancing our high performing and inclusive culture."

The company's strong performance relative to expectations and optimistic outlook for Q4 appear to be driving the significant 25% stock price increase following the earnings release.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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