Envista Holdings Corporation NVST reported fourth-quarter 2023 adjusted earnings per share (EPS) of 29 cents, down 44.2% year over year. The bottom line missed the Zacks Consensus Estimate by 12.1%.

The adjustments include charges and benefits related to the amortization of acquired intangible assets, goodwill and intangible asset impairment, among others.

The company’s loss from continuing operations was $1.27 in the quarter compared with the year-ago quarter’s EPS of 45 cents.

For the full year, adjusted earnings were $1.53 per share, reflecting a 21.2% fall from the year-ago period. It also missed the Zacks Consensus Estimate by 3.2%.

Revenues in Detail

Revenues totaled $645.6 million in the reported quarter, down 2.3% year over year. However, the metric topped the Zacks Consensus Estimate by 2.3%.

Total revenues for 2023 were $2.57 billion, dropping 0.1% from the year-ago period’s levels. The figure beat the Zacks Consensus Estimate by 0.8%.

Segments in Detail

In the fourth quarter, Speciality Products & Technologies totaled $415.9 million, up 4.4%. Within the segment, Envista’s Orthodontic business rose nearly 15%, with Spark continuing to outperform.

Revenues in the Equipment & Consumables segment fell 12.5% year over year to $229.7 million in the quarter under review. The downside was primarily due to the timing of orders in the North American distribution channel.

Operational Update

Gross profit in the reported quarter fell 8.3% year over year to $335.9 million. Gross margin contracted 339 basis points (bps) to 52%.

Selling, general and administrative expenses were up 2.6% year over year to $260.2 million. Research and development expenses fell 17.9% year over year to $20.2 million.

Envista Holdings Corporation Price, Consensus and EPS Surprise

 

Envista Holdings Corporation price-consensus-eps-surprise-chart | Envista Holdings Corporation Quote

 

Operating profit of $55.5 million fell 36.9% year over year. The operating margin contracted 472 bps to 8.6%.

Financial Update

Envista ended 2023 with cash and cash equivalents of $940 million compared with $606.9 million at the end of 2022. Total long-term debt was $1.39 billion at the end of 2023 compared with $870.7 million at the end of 2022.

Net cash provided by operating activities at the end of 2023 was $275.7 million compared with $182.7 million a year ago.

2024 Guidance

Envista provided 2024 guidance.

For the full year 2024, Envista expects core sales to grow by low-single digits. The Zacks Consensus Estimate for 2024 revenues is pegged at $2.60 billion.