- Align Technology Inc (NASDAQ:ALGN) shares are trading significantly lower Thursday after the company reported weak Q1 financial results.
- Align said Q1 FY22 revenues were $973.2 million, down 5.6% sequentially and up 8.8% Y/Y, below the consensus estimate of $996.59 million.
- Clear Aligner revenues reached $809.7 million, down 0.7% sequentially and up 7.5% Y/Y. Volume declined 5.1% sequentially and up 0.5% Y/Y.
- Imaging Systems and CAD/CAM Services revenues were $163.5 million, down 24.2% sequentially and up 15.6% Y/Y.
- Operating income declined from $225.45 million to $198.1 million resulting in a margin of 20.4%, down from 25.2% a year ago.
- Adjusted EPS of $2.13 missed the Wall Street estimate of $2.33.
- Align Technology President & CEO Joe Hogan said, "Overall, the first quarter proved to be a tougher than expected operating environment globally.".
- "We believe our results primarily reflect three factors: the continued impact of COVID-19 waves, a weaker economic environment and waning consumer confidence driven by increasing inflationary pressures and supply chain disruptions; and the military conflict in Ukraine and fallout across Europe," he added.
- Analyst Assessment: Piper Sandler maintained an Overweight rating for Align and lowered the price target from $600 to $440.
- Morgan Stanley kept an Overweight rating and lowered the price target from $575 to $524.
- Baird lowered the price target from $625 to $510.
- Price Action: ALGN shares are down 17.9% at $295.74 during the market session on the last check Thursday.
