In the latest report, earnings spiked 43% higher year over year. The company's plan calls for margin improvements and expense control in an effort to return the bottom line to growth starting in 2019.Īnders Bylund (Party City): The party supplies retailer has beaten the Street's earnings estimates in all three of the earnings reports it has published in 2018. More recently, the company even had to reduce its adjusted full-year profit guidance by 20%.Īs you'd expect, management has made promises to take action to correct the situation. Management has struggled to realize the expected synergies from the deal and has been forced to book a couple billion-dollar write-offs. Unfortunately, things haven't exactly gone according to plan. The idea was that increased scale and cross-selling would create a business that was more valuable than the sum of its parts.
A few years ago, Dentsply paid $5.5 billion in stock to buy Sirona and became one of the largest suppliers of professional dental products in the world. What can explain such a horrendous move for a predictable business? The answer is that the company is having huge problems digesting a massive acquisition. Shareholders of this business have been forced to weather a 40% drop in the stock price since the start of the year. Unfortunately, that fact hasn't helped investors in Dentsply Sirona at all this year.
No smiles after this mergerīrian Feroldi (Dentsply Sirona): The dental supply business is normally a boring but highly predictable industry. Piggy bank sitting atop a pile of dollar bills in large denominations, covered in coins.
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