Align Technology Earnings Preview: What to Expect

Valued at a market cap of $16.3 billion, Align Technology, Inc. (ALGN) designs and markets Invisalign clear aligners and iTero intraoral scanners, offering advanced solutions for orthodontic and restorative dental care. The Tempe, Arizona-based company serves dental professionals globally with innovative technologies like 3D printing, digital diagnostics, and treatment planning tools. The company is expected to unveil its fiscal Q4 earnings results after the market closes on Wednesday, Feb. 5. 

Ahead of the event, analysts forecast the Invisalign tooth-straightening system maker to post a profit of $2.02 per share, reflecting a growth of 5.8% from $1.91 per share in the same quarter last year. The company has surpassed Wall Street's bottom-line projections in two of the past four quarters while missing on two other occasions. ALGN missed the consensus EPS estimate by a margin of 11.1% in the last reported quarter.

For fiscal 2024, analysts expect ALGN to report EPS of $7.45, a 13.1% increase from $6.59 in fiscal 2023.

ALGN has dropped 17.3% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 27.2% rise and the Health Care Select Sector SPDR Fund's (XLV) marginal decline over the same period.

Despite reporting weaker-than-expected Q3 revenue of $977.9 million on Oct. 23, Align Technology's shares climbed 4.2% the following day as the company’s adjusted EPS of $2.35 exceeded the consensus estimate. The company also saw strong growth in its Imaging Systems and CAD/CAM Services segment, with a 15.6% year-over-year increase to $191 million in revenue. Additionally, Align reported record Clear Aligner volume and teen case starts, particularly in international markets like China. The announcement of a stock repurchase plan and a restructuring initiative to improve margins in 2025 further boosted investor confidence.

Analysts' consensus rating on ALGN stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 12 analysts covering the stock, opinions include eight "Strong Buys," one "Moderate Buy," two "Holds," and one "Moderate Sell." This configuration is more bullish than three months ago, with six analysts suggesting a "Strong Buy." 

The average analyst price target for ALGN is $268.82, suggesting a modest potential upside of 22.8% from current levels. 

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.