Core Viewpoint - Align Technology reported quarterly earnings of $2.44 per share, exceeding the Zacks Consensus Estimate of $2.43 per share, and showing a slight increase from $2.42 per share a year ago [1][2] Financial Performance - The company achieved revenues of $995.22 million for the quarter ended December 2024, which was below the Zacks Consensus Estimate by 0.18%, but an increase from $956.73 million year-over-year [3] - Align Technology has surpassed consensus EPS estimates in all four of the last quarters, while it has only topped revenue estimates once in the same period [2][3] Stock Performance - Align Technology shares have increased approximately 3% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.27 on revenues of $1.02 billion, and for the current fiscal year, it is $10.10 on revenues of $4.19 billion [8] - The outlook for the Medical - Dental Supplies industry, to which Align Technology belongs, is currently in the bottom 40% of Zacks industries, which may negatively impact stock performance [9]

Align Technology, Inc. (NASDAQ:ALGN) Q4 2024 Earnings Conference Call February 5, 2025 4:30 PM ET Company Participants Shirley Stacy - Vice President, Corporate Communications & Investor Relations Joe Hogan - President & Chief Executive Officer John Morici - Chief Financial Officer Conference Call Participants Michael Cherny - Leerink Partners Elizabeth Anderson - Evercore ISI Glen Santangelo - Jefferies Jon Block - Stifel David Saxon - Needham Jeff Johnson - Baird Brandon Vazquez - William Blair Jason Bedn ...

Revenue Performance - Q4'24 total revenues reached $995.2 million, up 4.0% year-over-year, while FY2024 total revenues were $4.0 billion, up 3.5% year-over-year[1][2][3] - Q4'24 Clear Aligner revenues were $794.3 million, reflecting a 1.6% increase year-over-year, with total Clear Aligner shipments of 628,730 units, up 6.1% year-over-year[4][7] - Q4'24 Systems and Services revenues were $200.9 million, up 14.9% year-over-year, contributing to a total of $768.9 million for FY2024, which is a 16.0% increase from FY2023[4][8] - Clear Aligner volumes for FY2024 totaled 2.5 million cases, representing a 3.5% increase year-over-year[5][8] - GAAP net revenues for fiscal 2024 reached $3,999,012, a 3.5% increase from $3,862,260 in 2023[38] - Clear Aligner net revenues were $3,230,122, up from $3,199,329, reflecting a 1.0% constant currency impact[38] Profitability Metrics - FY2024 operating margin was 15.2%, with a non-GAAP operating margin of 21.8%, while diluted net income per share was $5.62, down 5.3% from FY2023[3][8] - Q4'24 net income was $103.8 million, or $1.39 per diluted share, impacted by foreign exchange losses of approximately $0.14 per diluted share[4][6] - GAAP income from operations for Q4 2024 was $144,149, down from $171,545 in Q4 2023, resulting in an operating margin of 14.5%[41] - Non-GAAP net income for Q4 2024 was $181,644,000, slightly down from $183,469,000 in Q4 2023, representing a decrease of 1.0%[44] - GAAP diluted net income per share for Q4 2024 was $1.39, down from $1.64 in Q4 2023, a decline of 15.2%[44] - Non-GAAP diluted net income per share for Q4 2024 was $2.44, compared to $2.42 in Q4 2023, an increase of 0.8%[44] Cash and Investments - The company repurchased $352.9 million of common stock in 2024, concluding the year with no debt and approximately $1,044 million in cash and cash equivalents[3][10] - Cash and cash equivalents at the end of 2024 were $1,043,887 thousand, up from $937,438 thousand at the end of 2023[33] - The company reported a total stockholders' equity of $3,851,985 thousand as of December 31, 2024, an increase from $3,630,489 thousand in 2023[33] - The company initiated a plan to repurchase $275 million of common stock, with approximately $202.9 million spent by December 31, 2024[18] - As of January 31, 2025, $225 million remains available for stock repurchases under the program approved in January 2023[18] Future Outlook - For Q1'25, the company expects worldwide revenues to be in the range of $965 million to $985 million, down sequentially from Q4 due to unfavorable foreign exchange and lower capital equipment sales[20] - Clear Aligner volume is expected to increase slightly sequentially in Q1'25, while Clear Aligner average selling prices (ASPs) are anticipated to decrease sequentially[20] - The company projects a year-over-year revenue growth of low single digits for 2025, reflecting approximately 2 points of unfavorable foreign exchange[20] - Clear Aligner volume growth for 2025 is expected to be up approximately mid-single digits year-over-year, compared to a 3.5% increase in 2024[20] - The company plans to invest between $100 million and $150 million in capital expenditures for fiscal 2025, primarily for building construction and manufacturing capacity[20] Operational Metrics - The company achieved 271.6 thousand active Invisalign trained practitioners and over 19.5 million Invisalign patients, including over 5.6 million teens and kids[5][6] - The number of Invisalign trained doctors receiving cases in Q4 2024 was 85,685, a slight decrease from 83,700 in Q4 2023[35] - Clear Aligner revenue per case shipment in Q4 2024 was $1,265, down from $1,320 in Q4 2023[35] Cost and Expenses - Total operating expenses increased to $552,792 thousand in Q4 2024 from $497,979 thousand in Q4 2023, driven by higher selling, general and administrative expenses[32] - Total operating expenses for fiscal 2024 were $2,191,531, compared to $2,063,525 in 2023, indicating increased investment in operations[43] - Stock-based compensation for Q4 2024 was $38,848,000, consistent with $38,829,000 in Q4 2023[44] - The company initiated restructuring plans in Q4 2024, incurring restructuring charges of $36,991,000, compared to $13,989,000 in Q4 2023[44] - Legal settlement loss for the year ended December 31, 2024, was $30,968,000, compared to no losses in the previous year[44] Market Position and Strategy - Align Technology completed a $30.0 million equity investment in Smile Doctors, enhancing its market position in the orthodontic sector[9] - Align Technology plans to raise the list price of Clear Aligners by approximately 3% on average in the Americas and EMEA regions starting March 1, 2025[16] - The company is monitoring the U.S./Mexico tariff situation closely, with a potential 25% tariff on goods from Mexico still making it more economical to ship clear aligners from Mexico to the U.S.[17]

The fourth-quarter 2024 earnings season has just kicked off for the MedTech space, with a number of bigwigs scheduled to release their results this week.See the Zacks Earnings Calendar to stay ahead of market-making news.Per the latest Earnings Preview, quarterly results of the broader Medical sector are projected to improve year over year, buoyed by increased demand across multiple industries and a rise in hospital visits. AI-powered algorithms drove innovation in the fourth quarter in diagnostics, cardiov ...

Wall Street analysts forecast that Align Technology (ALGN) will report quarterly earnings of $2.43 per share in its upcoming release, pointing to a year-over-year increase of 0.4%. It is anticipated that revenues will amount to $997.02 million, exhibiting an increase of 4.2% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial ...

Andrii Yalanskyi The following segment was excerpted from Giverny Capital Asset Management's Q4 2024 Letter. My research colleague, John Bleday, and I have spent a lot of our time since he joined us in 2023 looking for companies that have proven ...

Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Labcorp (LH) or Align Technology (ALGN) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight ...

Align Technology (ALGN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 5, 2025, might help the stock move higher if these key numbers are bette ...

Align Technology, Inc. (ALGN) is set to release fourth-quarter 2024 results on Feb. 5, after the closing bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company posted adjusted earnings per share (EPS) of $2.35 in the last reported quarter, which topped the Zacks Consensus Estimate by 1.7%. Align Technology beat on earnings in each of the trailing four quarters, the average surprise being 6.18%.ALGN’s Q4 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $997.0 m ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Align Technology (ALGN) , which belongs to the Zacks Medical - Dental Supplies industry.This maker of the Invisalign tooth-straightening system has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 2.81%.For the most recent quarter, Align Technology was exp ...