Envista Holdings Corp (NYSE: NVST) shares surged over 13% in pre-market trading on October 31, 2024, after the dental products company reported better-than-expected third-quarter results, despite year-over-year declines in revenue and earnings.

For the quarter ended September 30, 2024, Envista reported revenue of $601 million, down 4.8% from the same period last year, but beating analysts' expectations of $590.3 million. The company's adjusted earnings per share (EPS) came in at $0.12, lower than $0.43 a year ago, but surpassing the consensus estimate of $0.09.

The company's performance was impacted by challenging market conditions, with core sales declining 5.3% year-over-year. Both the Specialty Products and Technology, and Equipment and Consumables segments experienced declines, with the former down 5.2% and the latter down 5.6%.

Envista's adjusted gross margin and adjusted EBITDA margin also suffered, decreasing by 490 basis points and 10.5 percentage points, respectively, compared to the prior year. The company cited revenue deferrals related to its Spark product and dealer inventory realignment as contributing factors to the lower margins.

Despite the challenges, Envista reaffirmed its full-year guidance, expecting a return to growth in the fourth quarter. The company also highlighted positive developments, such as gaining market share in orthodontics and diagnostics, strong free cash flow generation, and strategic investments in growth areas like premium implants.