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Tempe, Arizona-based Align Technology, Inc. (ALGN) designs, manufactures, and markets Invisalign clear aligners, and iTero intraoral scanners and services for orthodontists and general practitioner dentists. Valued at $17.9 billion by market cap, the company also manufactures software for dental laboratories and dental practitioners. The leading manufacturer of clear aligners is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Wednesday, Oct. 23.
Ahead of the event, analysts expect ALGN to report a profit of $1.89 per share on a diluted basis, up 16.7% from $1.62 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect ALGN to report EPS of $7.61, up 15.5% from $6.59 in fiscal 2023. Its EPS is expected to rise 14.3% year over year to $8.70 in fiscal 2025.
ALGN stock has underperformed the S&P 500’s ($SPX) 34.8% gains over the past 52 weeks, with shares down 18.5% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV)18.9% gains over the same time frame.
Investor concerns regarding declining average selling prices for Clear Aligners and a decrease in gross margins have impacted ALGN's overall performance. Additionally, the postponement of the iTero Lumina launch, which includes restorative capabilities, has added to the negative market reaction.
On Aug. 16, ALGN shares closed up more than 2% after Piper Sandler Companies (PIPR) noted that volumes for the company's dental medical devices had exceeded expectations by the largest margin in almost three years.
On Jul. 24, ALGN shares closed down more than 2% after reporting its Q2 results. Its adjusted EPS of $2.41 topped Wall Street expectations of $2.32. The company’s revenue was $1.03 billion, falling short of Wall Street forecasts of $1.04 billion. For Q3, ALGN expects revenue to be between $980 million to $1 billion.
Analysts’ consensus opinion on ALGN stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 11 analysts covering the stock, six advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, two give a “Hold” rating, one advises a “Moderate Sell” rating, and one recommends a “Strong Sell.” ALGN’s average analyst price target is $288.36, indicating a potential upside of 21.7% from the current levels.
On the date of publication, Neha Panjwani 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.
