Why Is Envista (NVST) Down 18.2% Since Last Earnings Report?

A month has gone by since the last earnings report for Envista (NVST). Shares have lost about 18.2% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Envista due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. NVST Q4 Earnings and Revenues Beat, Operating Margin CrashesEnvista 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%.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.The full-year adjusted EPS was 73 cents, reflecting a 52.3% decrease from the 2023 figure.NVST’s RevenuesRevenues 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 RevenuesIn 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 UpdateThe 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 the 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 UpdateEnvista 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 GuidanceEnvista expects core sales growth to be between 1% and 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.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. How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -16.52% due to these changes.VGM ScoresCurrently, Envista has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Envista has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerEnvista belongs to the Zacks Medical - Products industry. Another stock from the same industry, Abbott (ABT), has gained 5.4% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.Abbott reported revenues of $10.97 billion in the last reported quarter, representing a year-over-year change of +7.2%. EPS of $1.34 for the same period compares with $1.19 a year ago.Abbott is expected to post earnings of $1.07 per share for the current quarter, representing a year-over-year change of +9.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of D.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Envista Holdings Corporation (NVST): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks