Second quarter '07 earnings beat estimates by a penny due to strong top line organic earnings growth (organic earnings growth is the good kind of earnings growth). Further, XRAY raised 2007 earnings guidance from $1.56 - $1.61 per share to $1.60 - $1.64 per share.
Given this new information, XRAY should perform well over the next several trading days (and beyond) relative to the rest of the market (ceteris paribas). Further, I still like that over 60% of XRAY revenue comes from outside the US, it is still fairly cheap on a P/E and P/B basis, and until there are fundamental changes, I will continue to hold it as my primary healthcare stock.
Disclosure: author is long XRAY.
XRAY 1-yr chart: