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Align Technology (ALGN) Reports Q2 Earnings: What Key Metrics Have to Say

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Align Technology (ALGN - Free Report) reported $1 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 3.4%. EPS of $2.22 for the same period compares to $2.00 a year ago.

The reported revenue represents a surprise of +1.65% over the Zacks Consensus Estimate of $985.87 million. With the consensus EPS estimate being $2.02, the EPS surprise was +9.90%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Align Technology performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Clear Aligner Shipments: 604.45 versus 585.5 estimated by two analysts on average.
  • Net revenues- Clear Aligner revenues- International: $378.40 million compared to the $350.94 million average estimate based on two analysts.
  • Net revenues- Clear Aligner revenues- Americas: $375.30 million compared to the $377.99 million average estimate based on two analysts.
  • Net revenues- Total Clear Aligner: $832.67 million versus the three-analyst average estimate of $813.44 million. The reported number represents a year-over-year change of +4.3%.
  • Net revenues- Imaging Systems and CAD/CAM Services: $169.50 million versus $171.92 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -1% change.
  • Net revenues- Clear Aligner revenues- Non-case: $79 million compared to the $86.82 million average estimate based on two analysts. The reported number represents a change of +17.9% year over year.
  • Gross profit- Systems and Services: $110.40 million compared to the $102.31 million average estimate based on three analysts.
  • Gross profit- Clear Aligner: $603.30 million versus the three-analyst average estimate of $591.88 million.
View all Key Company Metrics for Align Technology here>>>

Shares of Align Technology have returned -5.5% over the past month versus the Zacks S&P 500 composite's +1.4% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

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