Envista Holdings Corporation NVST reported fourth-quarter 2024 adjusted earnings per share (EPS) of 24 cents, down 17.2% year over year. The bottom line surpassed the Zacks Consensus Estimate by 4.3%.

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The adjustments include non-cash charges related to the amortization of acquisition-related and other intangible assets, restructuring costs and asset impairments, among others.

The company’s GAAP EPS was 1 cent compared with the year-ago quarter’s loss of $1.27 per share.

Full-year adjusted EPS was 73 cents, reflecting a 52.3% decrease from the 2023 figure. 

Following the announcement, shares of NVST climbed 5.9% last Thursday. 

NVST’s Revenues

Revenues totaled $652.9 million, up 1.1% year over year. The metric topped the Zacks Consensus Estimate by 1.1%.

Full-year revenues totaled $2.51 billion, down 2.2% from the 2023 level. 

Segmental Details of Q4 Revenues

In the fourth quarter, Specialty Products & Technologies’ revenues totaled $410.9 million, down 1.2% year over year.

Revenues from the Equipment & Consumables segment increased 5.3% year over year to $242 million.

NVST’s Operational Update

The gross profit in the reported quarter rose 10.8% year over year to $372.5 million. The gross margin expanded 498 basis points (bps) to 57.1% due to a 9.4% decline in cost of sales.

Selling, general and administrative expenses rose 15.2% year over year to $299.7 million. Research and development expenses rose 32.2% to $26.7 million.

The operating profit of $46.1 million fell 17.4% year over year. The operating margin contracted 158 bps to 7.1%.

NVST’s Financial Update

Envista ended the fourth quarter of 2024 with cash and cash equivalents of $1.07 billion compared with $940 million at the end of 2023. Long-term debt amounted to $1.28 billion compared with $1.40 billion in the comparable period of 2023.

Year to date, net cash provided by operating activities amounted to $336.5 million compared with $275.7 million a year ago.

2025 Guidance

Envista provided its 2025 guidance.

It expects core sales growth to be between 1% to 3% and adjusted EBITDA margins to be approximately 14%. The Zacks Consensus Estimate for 2025 revenues is pegged at $2.56 billion, suggesting a 2.1% increase from the year-ago reported figure.

Envista Holdings Corporation Price, Consensus and EPS Surprise

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

Adjusted earnings per share are anticipated to be in the band of $0.95-$1.05. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.10. 

Our Take on NVST

Envista closed the fourth quarter of 2024 with better-than-expected results, with earnings and revenues beating the respective estimates. In the quarter, the company delivered positive growth across both of its implant portfolios. Additionally, Spark delivered another strong quarter of growth. 

However, the Specialty Products & Technologies segment posted a sales decline, impacted by two significant dynamics outside the normal business drivers — a larger impact from the change in Spark revenue deferral and a decline in orthodontic China volumes. The declining operating profit, along with the contraction of the operating margin during the quarter, is discouraging.

Zacks Rank and Key Picks

Envista currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Quest Diagnostics DGX, ResMed RMD and Cardinal Health CAH. 

Quest Diagnostics reported fourth-quarter 2024 adjusted EPS of $2.23, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.62 billion beat the Zacks Consensus Estimate by 1.9%. 

DGX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DGX has an earnings yield of 5.9% compared with the industry’s 4.1%. The company beat on earnings in each of the trailing four quarters, the average surprise being 3.8%.

ResMed, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%.

RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Cardinal Health, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $1.93, which outpaced the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.

CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

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