Envista earnings: what to look for from NVST

What happened

Envista Holdings, a dental products company, will report earnings on Wednesday after market hours. Last quarter it reported revenue of $730.5 million, up 7.1% year on year, and beat analysts' revenue and EPS estimates. This quarter, the market expects revenue growth of 2.7% year on year.

Confirmed

Global impact / market context

Envista's expected growth of 2.7% is much slower than the 11.5% recorded a year earlier, so the report will show whether demand is cooling. Because the company beat estimates last quarter, investors will compare the new results with those high expectations.

Analyst inference

Peers Align Technology and Intuitive Surgical have already reported quarterly results, giving a hint at demand in healthcare equipment. Align grew revenue 1.9% and beat estimates by 1.1%, while Intuitive grew 21.7% and topped estimates by 5.3%, showing mixed results across the segment.

Analyst inference

What to watch

1. Watch whether Envista's revenue grows 2.7% year on year this quarter, matching the market expectation, after the 11.5% increase recorded in the same quarter last year. Confirmed
2. Watch whether Envista again exceeds Wall Street's estimates, since analysts reconfirmed their estimates over the last 30 days and the company has a history of beating expectations. Proposed
3. Watch whether slower revenue growth comes with pressure on profit per sale, which means the money kept from each sale, as that would affect earnings and the stock price. Analyst inference

Evidence

• stockstory.org