Align Technology, Inc. (NASDAQ:ALGN) Earnings Preview
- Analysts expect earnings per share (EPS) to be $2.43, with projected revenue of approximately $999.2 million for the quarter ending December 2024.
- The company is anticipated to report a slight year-over-year EPS increase of 0.4%, supported by a projected revenue increase of 4.2%.
- Align Technology's financial metrics, including a price-to-earnings (P/E) ratio of approximately 36.53 and a low debt-to-equity ratio of approximately 0.03, highlight its strong financial position.
Align Technology, Inc. (NASDAQ:ALGN) is a prominent player in the dental industry, best known for its Invisalign tooth-straightening system. The company is set to release its quarterly earnings on February 5, 2025. Analysts expect earnings per share (EPS) to be $2.43, with projected revenue of approximately $999.2 million. These figures are crucial as they provide insight into the company's financial health and market performance.
For the quarter ending December 2024, Align Technology is expected to report a slight year-over-year EPS increase of 0.4%, reaching $2.43. This modest growth is supported by a projected revenue increase of 4.2%, totaling around $997 million. Despite these positive projections, the consensus EPS estimate has been revised downward by 1% over the past month, reflecting analysts' reassessment of the company's performance.
Align Technology's stock price could be significantly influenced by its performance relative to these expectations. If the company surpasses the estimated EPS and revenue, the stock may see an upward movement. Conversely, failing to meet these projections could lead to a decline. The management's discussion during the earnings call will be vital in understanding the sustainability of any immediate price changes and future earnings projections.
The company's financial metrics provide additional context for investors. Align Technology has a price-to-earnings (P/E) ratio of approximately 36.53, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 4.07, reflecting the market's valuation of its revenue. The enterprise value to sales ratio stands at 3.84, suggesting how the market values the company's sales in relation to its enterprise value.
Align Technology maintains a low debt-to-equity ratio of approximately 0.03, indicating a conservative use of debt in its capital structure. The current ratio is about 1.26, showing the company's ability to cover its short-term liabilities with its short-term assets. These financial metrics highlight Align Technology's strong financial position and its potential to meet market expectations in the upcoming earnings report.
| Symbol | Price | %chg |
|---|---|---|
| 048260.KQ | 1901000 | 0 |
| 287410.KQ | 12900 | 0 |
| 085370.KQ | 36700 | 0 |
| 6849.T | 2102 | 0.02 |
Align Technology, Inc. (NASDAQ: ALGN) Overview and Financial Insights
- Align Technology, Inc. (NASDAQ:ALGN) faces a downward trend in consensus price targets amidst macroeconomic challenges and foreign exchange headwinds.
- The company reported mixed results in its last earnings, with earnings per share at $2.41 surpassing estimates but revenue falling short.
- Despite current challenges, analysts like Richard Newitter from Leerink Partners see potential in Align, setting a high price target of $770.
Align Technology, Inc. (NASDAQ:ALGN) is a key player in the medical device industry, renowned for its Invisalign clear aligners and iTero intraoral scanners. The company operates in two main segments: Clear Aligner and Scanners and Services, serving orthodontists, general practitioner dentists, and specialists in restorative and aesthetic dentistry. Align faces competition from other dental technology companies, but it remains a leader due to its innovative products.
The consensus price target for Align has shown a downward trend over the past year. Last month, the average target was $266.25, down from $276 three months ago, and significantly lower than the $323.75 target a year ago. This decline suggests analysts are becoming more cautious, possibly due to macroeconomic challenges and foreign exchange headwinds affecting the company, as highlighted by Zacks.
Despite these challenges, Align's stock has seen a 1.2% increase since its last earnings report, released 30 days ago. The report showed mixed results, with earnings per share surpassing estimates at $2.41, compared to the Zacks Consensus Estimate of $2.32. However, revenue fell slightly short of expectations, contributing to a year-to-date stock decline of 21.56%.
Align's Q2 2024 earnings report revealed revenue growth across all regions, driven by the Imaging Systems & CAD/CAM Services segment. However, the company has adjusted its sales outlook for 2024, lowering projections. Analyst Richard Newitter from Leerink Partners has set a price target of $770, reflecting optimism about Align's potential despite current challenges.
Align's recent earnings call provided insights into its strategies and financial outlook. The company aims to leverage its large total addressable market, robust gross margins, and capable management to regain investor confidence. Investors should consider these factors, along with analyst price targets, when evaluating Align's stock.
Align Technology Jumps 17% Following Q2 Earnings
Following the release of its Q2 results, Align Technology (NASDAQ:ALGN) experienced a significant stock price surge of more than 17% intro-day today. The company reported an EPS of $2.22, surpassing the Street estimate of $2.04.
In terms of revenue, Align Technology achieved a year-over-year growth of 3.3%, reaching $1 billion, which exceeded the Street estimate of $992.76 million.
Notably, in the second quarter, Clear Aligner revenues experienced a year-over-year growth of 4.3%, amounting to $832.7 million. The volume of Clear Aligner cases reached 604,400, representing a 0.9% increase compared to the previous year.
For the upcoming Q3/23, the company anticipates revenue to fall within the range of $990 million to $1.01 billion, slightly higher than the Street estimate of $990 million. Align Technology projects full-year revenue to be in the range of $3.97 billion to $3.99 billion, surpassing the Street estimate of $3.94 billion.
