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Will Clear Aligner Sales Drive Align Technology's (ALGN) Q2 Earnings?
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Align Technology, Inc. (ALGN - Free Report) is set to release second-quarter 2024 results on Jul 24, after the closing bell.
The company posted adjusted earnings per share (EPS) of $2.14 in the last reported quarter, which topped the Zacks Consensus Estimate by 8.1%. Align Technology beat on earnings in three of the trailing four quarters and missed in one, the average surprise being 5.92%.
Q2 Estimates
The Zacks Consensus Estimate for Align Technology’s revenues is pegged at $1.04 billion, suggesting growth of 3.8% from the year-ago reported figure.
The Zacks Consensus Estimate for earnings is pinned at $2.33 per share, indicating a 4.9% improvement from the year-ago recorded actuals.
Estimate Revision Trend Ahead of Earnings
Estimates for Align Technology’s second-quarter earnings have moved down 4.7% to $2.33 per share in the past 60 days.
Let's take a look at how things might have shaped up for the MedTech major prior to the announcement.
Factors at Play
Clear Aligner Business
Similar to the last reported quarter, Align Technology is likely to have witnessed strength in Clear Aligner volumes for teens and international doctors. It is also expected to have registered continued growth from Invisalign touch-up cases.
In the to-be-reported quarter, non-case revenues might have witnessed a year-over-year increase owing to the sustained growth of Vivera retainers. Also, the growing adoption of ALGN’s monthly subscription-based Invisalign Doctor Subscription Program, which is currently available in the United States, Canada, Iberia, and the Nordics, might have contributed to the top line.
Meanwhile, in April 2024, Align Technology’s Invisalign Palatal Expander System was included in the Australian Register of Therapeutic Goods (“ARTG”) and the New Zealand Web Assisted Notification of Devices Database (“WAND”), making it commercially available in both Australia and New Zealand. This development must have contributed positively to the company’s top line in the quarter under review.
On a geographic basis, through the second-quarter months, clear aligner volumes are likely to have witnessed a sequential increase in Invisalign shipments from the APAC market and EMEA regions, as well as North American Invisalign teenage cases. The increased adoption of the Invisalign comprehensive three and three products might have driven volume growth. All these developments are anticipated to have favored ALGN’s second-quarter top line.
During the first quarter earnings call, the company noted that it expects to expand DSP into other country markets in EMEA in the second quarter, including a 14-stage touch-up aligner offering. If successfully executed, this too might have favorably contributed to ALGN’s Clear Aligner business in the quarter under review.
Going by the Zacks Consensus Estimate, ALGN’s Clear Aligner business revenues are likely to have improved by 2.3% from the year-ago reported figure.
In the second quarter, the Systems & Services business is projected to have witnessed growth, owing to increased services, CAD/CAM and non-systems revenues.
Earlier during the first quarter, the company upgraded the iTero Lumina inter-oral scanner with a 3x wider field of capture and a 50% smaller and 45% lighter wand, delivering faster scanning speed, higher accuracy, super visualization, and a comfortable scanning experience. This scanner is now available with orthodontic workflows as iTero Element 5D Plus. These developments must have boosted ALGN’s second-quarter results.
Going by the Zacks Consensus Estimate, ALGN’s Systems & Services business revenues are likely to have improved by 11.2% from the year-ago reported figure.
What Our Model Suggests
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, that is not the case here, as you can see below:
Earnings ESP: Align Technologies has an Earnings ESP of -1.50%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 79.17%. The Zacks Consensus Estimate for the company’s second-quarter EPS implies a surge of 266.7% from the year-ago quarter’s reported figure.
HCA Healthcare(HCA - Free Report) has an Earnings ESP of +7.10% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2024 results on Jul 23.
HCA’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 5.64%. The Zacks Consensus Estimate for the company’s second-quarter EPS implies a surge of 15.9% from the year-ago quarter’s reported figure.
High Tide (HITI - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank of #2 at present. The company is scheduled to release third-quarter fiscal 2024 results soon.
HITI has an expected revenue growth of 3.5% for 2024. High Tide’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 97.92%.
Image: Bigstock
Will Clear Aligner Sales Drive Align Technology's (ALGN) Q2 Earnings?
Align Technology, Inc. (ALGN - Free Report) is set to release second-quarter 2024 results on Jul 24, after the closing bell.
The company posted adjusted earnings per share (EPS) of $2.14 in the last reported quarter, which topped the Zacks Consensus Estimate by 8.1%. Align Technology beat on earnings in three of the trailing four quarters and missed in one, the average surprise being 5.92%.
Q2 Estimates
The Zacks Consensus Estimate for Align Technology’s revenues is pegged at $1.04 billion, suggesting growth of 3.8% from the year-ago reported figure.
The Zacks Consensus Estimate for earnings is pinned at $2.33 per share, indicating a 4.9% improvement from the year-ago recorded actuals.
Estimate Revision Trend Ahead of Earnings
Estimates for Align Technology’s second-quarter earnings have moved down 4.7% to $2.33 per share in the past 60 days.
Let's take a look at how things might have shaped up for the MedTech major prior to the announcement.
Factors at Play
Clear Aligner Business
Similar to the last reported quarter, Align Technology is likely to have witnessed strength in Clear Aligner volumes for teens and international doctors. It is also expected to have registered continued growth from Invisalign touch-up cases.
In the to-be-reported quarter, non-case revenues might have witnessed a year-over-year increase owing to the sustained growth of Vivera retainers. Also, the growing adoption of ALGN’s monthly subscription-based Invisalign Doctor Subscription Program, which is currently available in the United States, Canada, Iberia, and the Nordics, might have contributed to the top line.
Meanwhile, in April 2024, Align Technology’s Invisalign Palatal Expander System was included in the Australian Register of Therapeutic Goods (“ARTG”) and the New Zealand Web Assisted Notification of Devices Database (“WAND”), making it commercially available in both Australia and New Zealand. This development must have contributed positively to the company’s top line in the quarter under review.
On a geographic basis, through the second-quarter months, clear aligner volumes are likely to have witnessed a sequential increase in Invisalign shipments from the APAC market and EMEA regions, as well as North American Invisalign teenage cases. The increased adoption of the Invisalign comprehensive three and three products might have driven volume growth. All these developments are anticipated to have favored ALGN’s second-quarter top line.
During the first quarter earnings call, the company noted that it expects to expand DSP into other country markets in EMEA in the second quarter, including a 14-stage touch-up aligner offering. If successfully executed, this too might have favorably contributed to ALGN’s Clear Aligner business in the quarter under review.
Going by the Zacks Consensus Estimate, ALGN’s Clear Aligner business revenues are likely to have improved by 2.3% from the year-ago reported figure.
Align Technology, Inc. Price and EPS Surprise
Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote
Imaging Systems & CAD/CAM Service Business
In the second quarter, the Systems & Services business is projected to have witnessed growth, owing to increased services, CAD/CAM and non-systems revenues.
Earlier during the first quarter, the company upgraded the iTero Lumina inter-oral scanner with a 3x wider field of capture and a 50% smaller and 45% lighter wand, delivering faster scanning speed, higher accuracy, super visualization, and a comfortable scanning experience. This scanner is now available with orthodontic workflows as iTero Element 5D Plus. These developments must have boosted ALGN’s second-quarter results.
Going by the Zacks Consensus Estimate, ALGN’s Systems & Services business revenues are likely to have improved by 11.2% from the year-ago reported figure.
What Our Model Suggests
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, that is not the case here, as you can see below:
Earnings ESP: Align Technologies has an Earnings ESP of -1.50%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.
Hims & Hers Health(HIMS - Free Report) has an Earnings ESP of +19.28% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2024 results on Aug 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 79.17%. The Zacks Consensus Estimate for the company’s second-quarter EPS implies a surge of 266.7% from the year-ago quarter’s reported figure.
HCA Healthcare(HCA - Free Report) has an Earnings ESP of +7.10% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2024 results on Jul 23.
HCA’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 5.64%. The Zacks Consensus Estimate for the company’s second-quarter EPS implies a surge of 15.9% from the year-ago quarter’s reported figure.
High Tide (HITI - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank of #2 at present. The company is scheduled to release third-quarter fiscal 2024 results soon.
HITI has an expected revenue growth of 3.5% for 2024. High Tide’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 97.92%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.