Published on 14 Mar 2024 on Zacks via Yahoo Finance

Envista (NVST) Faces Macroeconomic Challenges, FX Headwind

Envista Corporation NVST continues to suffer due to unfavorable currency movement. Strong competitors also pose a tough challenge for the company. The stock has a Zacks Rank #5 (Strong Sell) currently.

Envista has been grappling with deteriorating international trade, with global inflationary pressure leading to a challenging situation related to raw material and labor costs as well as freight charges and rising interest rates. All these are creating significant pressure on the company’s profitability.Additionally, Russia’s invasion of Ukraine and the global response to this invasion, including sanctions imposed by the United States and other countries, are having an adverse impact on the company’s overall business. These impacted Envista’s ability to market and sell products in the affected regions and also heightened the risk of cyber security attacks, impacting its ability to enforce its intellectual property rights in Russia and creating disruptions in the global supply chain.The challenging macroeconomic conditions are resulting in a significant escalation in the company’s costs and expenses. During the fourth quarter of 2023, Envista’s SG&A expenses rose 2.6%. The company’s operating profit fell 36.9% year over year.

Envista Holdings Corporation Price