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Based in Tempe, Arizona, Align Technology, Inc. (ALGN) is a global leader in the design and manufacture of innovative medical devices, best known for its Invisalign system of clear aligners. With a market cap of $18.74 billion, Align Technology offers a comprehensive suite of digital orthodontic and restorative treatments. The company is set to report its fiscal second-quarter earnings for 2024 after the market closes on Wednesday, Jul. 24.
Ahead of the event, analysts expect ALGN to report a profit of $1.90 per share, up 9.8% from $1.73 per share in the year-ago quarter. In the last four quarters, the company has surpassed Wall Street’s bottom-line estimates in three and missed on another occasion.
Align Technology's adjusted earnings of $1.62 per share for the last reported quarter beat the consensus estimate by 5.2%. The company's strong performance was driven by robust revenue growth in the Clear Aligner segment and favorable foreign exchange impacts.
For fiscal 2024, analysts expect ALGN to report EPS of $7.86, up 19.3% from $6.59 in fiscal 2023. Fiscal 2025 EPS is expected to grow 14.6% year over year to $9.01.
ALGN stock is down 9.2% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 16.8% returns and the iShares U.S. Medical Devices ETF (IHI) 2.6% increase over the same time frame.
On Apr. 24, the company reported its Q1 earnings. ALGN shares gained marginally after the report and 1.1% the following day. The company reported revenue of $997.4 million, surpassing the analyst estimate of $972 million. It expects revenue between $1.03 billion and $1.05 billion for the quarter ending in June.
The consensus opinion on ALGN stock is optimistic, with an overall “Moderate Buy” rating. Out of 11 analysts covering the stock, six advise a “Strong Buy” rating, one recommends a “Moderate Buy,” two analysts suggest a “Hold,” one suggests a “Moderate Sell,” and one gives a “Strong Sell.” The average analyst price target for ALGN is $328.55, indicating a potential upside of 32% from the current levels.
On the date of publication, Rashmi Kumari 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.
