Align Technology (ALGN) Down 9.8% Since Last Earnings Report: Can It Rebound?

A thirty day period has absent by considering the fact that the very last earnings report for Align Technology (ALGN). Shares have misplaced about 9.8% in that time frame, underperforming the S&P 500.

Will the latest damaging development continue on top up to its future earnings release, or is Align Technological know-how thanks for a breakout? Right before we dive into how traders and analysts have reacted as of late, let us get a brief look at its most the latest earnings report in buy to get a superior manage on the important motorists.

Align Know-how Q1 Earnings Lag Estimates, Margins Fall

Align Technological innovation, Inc.’s 1st-quarter 2022 earnings for every share were being $2.13 in comparison to the calendar year-in the past $2.49, reflecting a decrease of 14.5%. The quarter’s EPS lagged the Zacks Consensus Estimate by 4.9%.

GAAP earnings for each share for the quarter was $1.70, down from the yr-ago earnings for every share of $2.51, reflecting a plunge of 32.3%.


Revenues surged 8.8% year in excess of 12 months to $973.2 million in the quarter, lacking the Zacks Consensus Estimate by 2.9%.

Segments in Depth

In the initially quarter, revenues at the Very clear Aligner section rose 7.5% yr about calendar year to $809.7 million, with strong earnings expansion throughout locations and merchandise. Within just the segment, Invisalign situation shipments amounted to 598,835, up .5% yr above yr.

In the course of the quarter, Crystal clear Aligner situation volumes declined 1.5% and rose 3% year more than yr in the Americas and Global regions, respectively. Crystal clear Aligner scenario volume for teenage patients elevated 6% calendar year in excess of calendar year.

Revenues from Imaging Methods & CAD/CAM Solutions surged 15.5% to $163.5 million in the quarter thanks to enhanced providers revenues from the company’s iTero scanner installed base and exocad’s CAD/CAM companies. The business also continued to witness the growing adoption of the iTero Element 5D Additionally imaging program in the to start with quarter.


Gross earnings in the 1st quarter was $709.3 million, reflecting an improvement of 4.8% calendar year around 12 months. Gross margin in the quarter less than assessment contracted 279 basis factors (bps) calendar year more than 12 months to 72.9% on a 21.2% uptick in expense of internet revenues.

Through the quarter, Align Technological innovation witnessed a 10.7% calendar year-about-calendar year maximize in selling, standard and administrative bills to $439.5 million and a 31.7% rise in analysis and enhancement expenditures to $71.8 million.

Running money in the quarter under critique was $198.1 million as opposed with working gain of $225.4 million 12 months over calendar year, indicating a drop of 12.1%. The functioning margin contracted 484 bps to 20.4%.

Financial Information

Align Technologies exited the initial quarter of 2022 with funds, cash equivalents of $926.1million in contrast with $1.09 billion recorded at the stop of 2021.

Cumulative internet funds presented by running actions at the stop of the quarter was $30.5million in contrast with $227.2 million a year ago.

The organization expects to repurchase up to $200 million of its widespread inventory in the next quarter of 2022, via possibly open up industry repurchases or an accelerated inventory repurchase settlement, or a mixture of the two.


Align Technology has not provided revenue advice for 2022, specified the growing unpredictable character of the present running ecosystem. Having said that, heading by the final-claimed fourth-quarter earnings update, the organization expected internet earnings development for 2022 in the band of 20-30%. The Zacks Consensus Estimate for the company’s 2022 revenues is pegged at $4.74 billion.

For 2022, the organization expects running margin previously mentioned 20% (down from the earlier projected 24%) on a GAAP basis, assuming no additional content disruptions or situations outside of management.


How Have Estimates Been Relocating Due to the fact Then?

It turns out, estimates revision have trended downward during the previous thirty day period.

The consensus estimate has shifted -29.14% owing to these changes.

VGM Scores

At this time, Align Technological innovation has a pleasant Advancement Rating of B, however it is lagging a lot on the Momentum Score entrance with a D. Charting a relatively equivalent path, the stock was allocated a quality of C on the price side, placing it in the middle 20% for this financial investment strategy.

Total, the stock has an mixture VGM Score of C. If you aren’t targeted on one particular strategy, this score is the one you should be interested in.


Estimates have been broadly trending downward for the inventory, and the magnitude of these revisions indicates a downward shift. It can be no shock Align Technological innovation has a Zacks Rank #4 (Market). We assume a down below regular return from the stock in the next couple of months.

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