Envista Holdings (NYSE: NVST) Q4 CY2024 Results Surpass Analyst Expectations

Financial Highlights

* Revenue: $652.9 million (1.1% YoY growth, 0.8% beat on estimates)
* Adjusted EPS: $0.24 (9.9% beat on estimates)
* Adjusted EBITDA: $91 million (13.9% margin, 16% beat on estimates)
* Adjusted EPS guidance for FY2025: $1 at the midpoint (10.9% below analyst estimates)

Key Performance Indicators

* Operating Margin: 7.1%, up from -31.4% in the same quarter last year
* Free Cash Flow Margin: 19%, up from 14.5% in the same quarter last year
* Market Capitalization: $3.54 billion

Management Commentary

"In Q4 2024, Envista delivered results that were in line with expectations, indicating that our focus on growth, operations, and people is having a positive impact," said Paul Keel, Envista's CEO.

Company Overview

* Spun off from Danaher in 2019, Envista Holdings designs, manufactures, and markets a wide range of dental solutions, including diagnostic tools, implants, orthodontics, and consumables.
* Operates in the dental equipment and technology industry, benefiting from recurring revenue streams and growing demand for aesthetic and restorative dentistry.

Sales Growth

* 1.1% YoY revenue growth in Q4 CY2024
* Annualized revenue decline of 1.1% over the last two years
* Sell-side analysts forecast 2.4% revenue growth over the next 12 months

Adjusted Operating Margin

* 13.9% adjusted operating profit margin in Q4 CY2024
* Average adjusted operating margin of 15.4% over the last five years
* 1.3 percentage point increase in adjusted operating margin over the last five years
* 9.3 percentage point decrease in adjusted operating margin over the last two years

Earnings Per Share

* Diluted earnings per share (EPS) declined by 16.3% annually over the last five years
* $0.24 EPS in Q4 CY2024, down from $0.29 in the same quarter last year
* 9.9% beat on analyst estimates
* Wall Street expects full-year EPS of $0.73 for FY2025, representing a 53.7% growth

Key Takeaways

* Envista exceeded revenue expectations but missed EPS guidance.
* Strong adjusted EBITDA performance reflects cost optimization efforts.
* Earnings decline over the last five years raises concerns about profitability.
* Analyst consensus estimates remain below Envista's future growth expectations.

Full Report Access

For a comprehensive analysis of Envista's Q4 CY2024 results, including SWOT analysis, business model evaluation, and investment recommendations, please refer to our full research report at [link to report].