Envista Holdings Corporation NVST reported first-quarter 2025 adjusted earnings per share (EPS) of 24 cents, down 7.7% year over year. The bottom line surpassed the Zacks Consensus Estimate by 20%.

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 10 cents compared with 14 cents in the prior-year period.

Following the announcement, shares of NVST climbed 4% last Friday.

NVST’s Q1 Revenues

Revenues totaled $616.9 million, down 1.1% year over year. However, the metric topped the Zacks Consensus Estimate by 1.5%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Segmental Details of Q1 Revenues

In the first quarter, Specialty Products & Technologies’ revenues totaled $400.3 million, down 2.1% year over year.

Revenues from the Equipment & Consumables segment increased 0.8% year over year to $216.6 million.

NVST’s Operational Update

The gross profit in the reported quarter fell 5.7% year over year to $336 million. The gross margin contracted 267 basis points (bps) to 54.5% due to a 5.1% rise in cost of sales.

Selling, general and administrative expenses declined 4.6% year over year to $271.7 million. Research and development expenses rose 8.6% to $25.3 million.

The operating profit of $39 million fell 18.9% year over year. The operating margin contracted 139 bps to 6.3%.

NVST’s Financial Update

Envista ended the first quarter of 2025 with cash and cash equivalents of $1.08 billion compared with $1.07 billion at the end of the fourth quarter of 2024. Long-term debt amounted to $1.30 billion compared with $1.28 billion in the fourth quarter of 2024.

Year to date, net cash provided by operating activities amounted to $0.3 million compared with $40.3 million a year ago.

2025 Guidance

Envista reaffirmed its 2025 guidance.

It expects core sales growth to be 1-3% and adjusted EBITDA margins to be approximately 14%. The Zacks Consensus Estimate for 2025 revenues is pegged at $2.53 billion, suggesting a 0.8% increase from the year-ago reported figure.

Envista Holdings Corporation Price, Consensus and EPS SurpriseEnvista Holdings Corporation Price, Consensus and EPS Surprise

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

Adjusted EPS is anticipated to be in the band of $0.95-$1.05. The Zacks Consensus Estimate is pegged at $0.97.

Our Take on NVST

Envista closed the first quarter of 2025 with better-than-expected results, with earnings and revenues beating their respective estimates. In the quarter, the company experienced growth in its consumables, premium implants, and orthodontics (outside China) businesses.  Additionally, Spark delivered another strong quarter of growth.

Story Continues

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 gross as well as operating profit, along with the contraction of both margins 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 AngioDynamics ANGO, Veeva Systems VEEV and Masimo MASI.

AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents, which beat the Zacks Consensus Estimate of a loss of 13 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.

Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 70.9%.

Veeva Systems, sporting a Zacks Rank #1 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, which exceeded the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.

VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.9%.

Masimo, currently sporting a Zacks Rank #1, reported fourth-quarter 2024 adjusted EPS of $1.80, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $600.7 million topped the Zacks Consensus Estimate by 0.8%.

MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.4%.

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