Dentsply Adversely Impacted by Coronavirus and Worst to Come; Guidance Pulled

No-moat Dentsply reported first-quarter revenue of $874 million, representing a 4% year-over-year organic decline and we are maintaining a no-moat rating and fair value estimate of $40. Double-digit organic consumable revenue declined 15% and were partially offset by the 5% organic growth of the technology & equipment segment with strength in digital dentistry and supplemented new products, Prime Scan and Primemill. The revenue shortfall and the $199 non-cash impairment of the equipment and instruments segment resulted in lower profitability and a GAAP operating loss of $140 million.