Dentsply Sirona (XRAY)- The Erosion Continues

New restructuring sounds like the old ones- and leaves us unimpressed

We have long been a critic of Dentsply Sirona (XRAY) and first introduced it to our Substack audience with our April 2022 report, The Dentsply Sirona Implosion. We followed this up with our January 2023 piece XRAY- Maybe the Right People Just Haven’t Tried It Yet? In which we expressed our skepticism that the new management’s plan was going to be any more successful than actions taken by previous management teams.

Since that time, the company has repeatedly underwhelmed the Street as the price has continued to grind down. XRAY’s earnings have been in line for three straight quarters. This alone is suspicious and should make investors wonder if management is engaging in earnings management to keep from disappointing analysts further. Now the company has announced a new restructuring and an acceleration of its buyback. However, we continue to see multiple unusual benefits allowing the company to meet expectations and the new restructuring sounds an awful lot like the ones the company has been conducting for years which have eroded the quality of earnings and produced little evidence of real improvement in operations.

Let’s get behind the numbers to see why we don’t believe XRAY represents a value at current levels…