Align Technology Set to Release Earnings Amidst Mixed Analyst Views
Company Overview and Upcoming Earnings Announcement
Valued at a market cap of $16.3 billion, Align Technology, Inc. (ALGN) is renowned for designing and marketing Invisalign clear aligners and iTero intraoral scanners. Headquartered in Tempe, Arizona, the company provides dental professionals worldwide with cutting-edge technologies like 3D printing, digital diagnostics, and treatment planning tools. Investors are keenly awaiting the company’s fiscal Q4 earnings, which are set to be released after market close on Wednesday, Feb. 5.
Analysts’ Earnings Predictions
Expectations are high as analysts predict Align Technology will report a profit of $2.02 per share. This figure indicates a 5.8% growth from $1.91 per share in the same quarter last year. Over the past four quarters, ALGN has met Wall Street’s earnings expectations in two instances while falling short on the other two. Notably, the company missed consensus EPS by 11.1% last quarter.
Future Earnings Outlook for Fiscal 2024
Looking ahead to fiscal 2024, analysts forecast ALGN will achieve EPS of $7.45, reflecting a 13.1% increase from $6.59 in fiscal 2023.
Stock Performance and Recent Developments
ALGN’s stock has faced a 17.3% decline over the past year, underperforming compared to the broader S&P 500 Index’s ($SPX) 27.2% increase and the Health Care Select Sector SPDR Fund’s (XLV) slight drop during the same time frame.
Investor Sentiment and Analyst Ratings
Despite a weaker-than-expected Q3 revenue of $977.9 million reported on Oct. 23, Align Technology’s shares saw a 4.2% increase the following day, bolstered by an adjusted EPS of $2.35 that exceeded estimates. The company experienced strong growth in its Imaging Systems and CAD/CAM Services segment, achieving a 15.6% year-over-year revenue increase to $191 million. Furthermore, record Clear Aligner volumes and a rise in teen case starts, particularly in international markets like China, contributed positively to market perceptions. A newly announced stock repurchase plan and a restructuring initiative aimed at margin improvement by 2025 also strengthened investor confidence.
The overall analyst consensus rating on ALGN stock is described as cautiously optimistic. Out of 12 analysts, there are eight “Strong Buys,” one “Moderate Buy,” two “Holds,” and one “Moderate Sell.” This is a more bullish outlook compared to three months ago when only six analysts recommended a “Strong Buy.”
Analysts have set an average price target of $268.82 for ALGN, indicating a potential upside of 22.8% from current market 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
