Align Technology Earnings: Here’s Why the Stock is Down Now

Align Technology Inc. (NASDAQ:ALGN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.03%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Align Technology Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 3.7% to $0.26 in the quarter versus EPS of $0.27 in the year-earlier quarter.

Revenue: Rose 13.71% to $153.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Align Technology Inc. reported adjusted EPS income of $0.26 per share. By that measure, the company beat the mean analyst estimate of $0.22. It beat the average revenue estimate of $149.4 million.

Quoting Management: “Q1 was a solid quarter across the board. We’ve started the year with better than expected revenue and non-GAAP earnings driven primarily by record Invisalign case volume. Strong Invisalign case shipments in North America, especially among Orthodontists, reflect stable patient traffic in our customers’ offices as well as continued activity to encourage doctor engagement,” said Thomas M. Prescott, Align president and CEO. “Although we determined it was appropriate to record the impairment charges related to the scanner and CAD/CAM services unit, our long term view of this business remains positive and we will continue to execute plans to be a leader in this business. In addition, we continue to see leverage in the Invisalign business from scanner technology and maintain our belief in the long term benefits of the scanner and CAD/CAM services business.”

Key Stats (on next page)…

Revenue increased 7.53% from $142.84 million in the previous quarter. EPS decreased 3.7% from $0.27 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.32 to a profit $0.30. For the current year, the average estimate has moved down from a profit of $1.22 to a profit of $1.18 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]