Yahoo Finance Align Technology (ALGN) to Post Q1 Earnings: What's in Store?
Align Technology, Inc. ALGN is set to release first-quarter 2023 results on Apr 26 after the closing bell.
The company posted adjusted earnings per share (EPS) of $1.73 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 13.82%. Align Technology beat earnings estimates in one of the trailing four quarters and missed on three occasions, the average negative surprise being 8.80%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
Clear Aligner
Align Technology is likely to have gained from increasing clear aligner shipments to Invisalign doctors worldwide. In the last reported quarter, ALGN company witnessed a year-over-year increase in the shipments of Invisalign case volumes across markets in Taiwan, Vietnam, Japan, Korea and India.
Align Technology, Inc. Price and EPS Surprise
Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote
Analysts expect the abovementioned trend to have continued in the to-be-reported quarter, aiding sales growth. However, despite the easing of COVID-19 restrictions in China and the encouraging downward trend in COVID-19 infection rates, uncertainties are expected to have adversely impacted the time and effort needed to restore consumer confidence in the first quarter.
Meanwhile, the company’s teen segment generates strong potential, with an increase in the number of doctors submitting teen cases in the past few months. Invisalign First for kids has been gaining market share rapidly across all regions.
In the last reported quarter, the EMEA region, in particular, saw strong sequential growth in the teen market segment, with solid demand for Invisalign Teen case packs. The growing uptake is likely to have sustained, benefiting the company’s top line in the first quarter.
Our model suggests a 4.6% drop in the Clear Aligner revenues from the year-ago quarter’s reported figure.
Imaging Systems & CAD/CAM Service Business
Align Technology is expected to have gained from robust iTero scanner service revenues as it did in the previous quarter. ALGN’s strategic collaboration with Desktop Metal to supply iTero Element Flex scanners to one of the largest lab networks in the United States supports the increased adoption of digital orthodontics and restorative dentistry. This growing uptake of iTero scanners and recent development are likely to have sustained, benefiting the company’s top line in the first quarter.
The continued rise in intraoral digital scans used for Invisalign case submissions signals enhanced digital adoption within dental offices. During the fourth-quarter earnings update, Align Technology noted developing new capital equipment opportunities to meet the digital transformation needs of the growing customer base. We anticipate this trend to have continued in the first quarter, advancing business performance.
Align Technology’s first-quarter results are likely to benefit from exocad CAD/CAM products and service revenues. These offerings, including restorative dentistry, implantology, guided surgery and smile design products, extend the Align Digital Platform to fully integrated interdisciplinary end-to-end workflows. ALGN looks forward to innovations in the current year and is set to commercialize one of its largest new product and technology cycles since its inception.
Per our model, the segment’s revenues indicate a 22.6% decline from the year-ago quarter’s reported figure.
Q1 Estimates
The Zacks Consensus Estimate for Align Technology’s first-quarter 2023 revenues is pegged at $900.8 million, suggesting a decline of 7.4% from the year-ago reported figure.
The consensus estimate for its first-quarter 2023 EPS of $1.68 suggests a 21.1% fall from the year-ago reported figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates. However, that is not the case here, as you can see below:
Earnings ESP: Align Technology has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
Quest Diagnostics DGX has an Earnings ESP of +0.54% and a Zacks Rank #3. The company will release first-quarter 2023 results on Apr 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
Quest Diagnostics has an expected earnings growth rate of 5.07% for the next year. DGX’s earnings yield of 6.10% compares favorably with the industry’s 3.26%.
Henry Schein HSIC has an Earnings ESP of +0.99% and a Zacks Rank #2. Henry Schein is expected to release first-quarter 2023 results on May 2.
HSIC has an expected long-term earnings growth rate of 8.10%. The company’s earnings yield of 6.45% compares favorably with the industry’s 4.54%.
BioRad Laboratories BIO currently has an Earnings ESP of +0.16% and a Zacks Rank #1. BioRad is scheduled to release first-quarter 2023 results on May 4.
BioRad has an expected earnings growth rate of 12.76% for the next year. BIO has an earnings yield of 3.32% compared with the industry’s -2.92%.
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Align Technology, Inc. (ALGN) : Free Stock Analysis Report
Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report
