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What: Shares of dental equipment maker Sirona Dental Systems
So what: Sirona's strong quarterly performance was all about the foreign markets -- even though currency fluctuations hurt its results. U.S. sales crept up just 0.9% from the prior year, while revenue outside the U.S. jumped 23% on a constant currency basis. The company said it saw particularly strong demand from Germany, other European markets, and the Asia-Pacific region. The bottom line looked good as well, as profit per share -- after adjusting for amortization expenses -- increased 19% to $0.96 and easily topped the $0.81 estimate from Wall Street.
Now what: As if all that wasn't enough, the company also boosted its full-year outlook. Management now sees constant currency revenue growing 9% to 12%, versus previous guidance for 7% to 9% growth. It also expects operating income to clock in at a midpoint of $212 million, up from its previous $204 million estimate.
Business appears to be clicking for Sirona right now, particularly beyond the U.S. Investors may want to keep an eye on cash flow in the coming quarters; cash flow from operations lagged net income during the December quarter, which is unusual for Sirona. Trading at just about 18 times fiscal 2011 profit estimates, shares are looking a bit pricey, so investors on the sidelines may want to hold out for a better price.
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.