The chart below shows how NVST performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NVST sees a +0.91% change in stock price 10 days leading up to the earnings, and a +0.26% change 10 days following the report. On the earnings day itself, the stock moves by -0.40%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Performance Exceeds Expectations: Envista Holdings Corp reported an adjusted EPS of $0.24, exceeding expectations of $0.23, demonstrating strong earnings performance.
Free Cash Flow Surge: The company generated over $300 million in free cash flow for the full year, reflecting a 35% increase compared to the prior year, indicating robust cash generation capabilities.
Gross Margin Improvement: Adjusted gross margin improved to 57.2%, an increase of nearly 500 basis points year-over-year, showcasing effective cost management and operational efficiency.
Equipment Sales Growth: Core sales in the Equipment & Consumables segment increased by 6.4% year-on-year, highlighting strong demand and growth in this key area of the business.
Share Repurchase Authorization: The Board authorized share repurchases of up to $250 million over the next two years, signaling confidence in the company's financial health and commitment to returning value to shareholders.
Negative
Decline in Adjusted EBITDA: Core growth in adjusted EBITDA for 2024 was negative 1.5%, indicating a decline in overall profitability despite efforts to improve performance.
Adjusted EBITDA Margin Decline: Adjusted EBITDA margin for Q4 was 13.9%, which is 170 basis points lower than the prior year, reflecting increased investments and operational challenges.
Q4 Adjusted EPS Decline: Adjusted EPS in Q4 was $0.24, down $0.05 compared to the same quarter last year, signaling a decrease in earnings per share amidst rising costs.
Specialty Products Revenue Decline: Core revenue in the Specialty Products & Technologies segment declined 40 basis points year-on-year, primarily due to a significant drop in the orthodontics business in China.
Diagnostics Business Decline: The Diagnostics business experienced a high-single-digit decline across several geographies, driven by macroeconomic conditions and low-cost competition, particularly in China.
Envista Holdings Corp (NYSE:NVST) Q4 2024 Earnings Call Transcript
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