We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Align Technology (ALGN) to Post Q2 Earnings: What's in Store?
Read MoreHide Full Article
Align Technology, Inc. (ALGN - Free Report) is set to release second-quarter 2022 results on Jul 27, after the closing bell.
The company reported adjusted earnings per share of $2.13 during the last reported quarter, which missed the Zacks Consensus Estimate by 4.9%. The company beat earnings estimates in the trailing three quarters and missed on one occasion, the average surprise being 9%.
Let’s look at how things have shaped up prior to this announcement.
Factors at Play
Total Clear Aligner
Align Technology is likely to gain from increasing clear aligners shipments to Invisalign doctors worldwide. The company witnessed a greater uptake of clear aligners, especially first-time customers. Analysts expect this trend to continue in the to-be-reported quarter, aiding sales growth.
Strong potential exists particularly in the teen segment, where the company recorded a 6% year-over-year improvement in Q1. To take advantage of the enormous possibility presented by teen orthodontics, the company introduced a new Invisalign Teen Subscription Program in the United States and Canada in April 2022. This program intends to help expand Invisalign adoption among teens, the largest segment of the orthodontic market. Also, Align Technology’s direct-to-teen campaign in EMEA, which educates teens on the benefits of Invisalign treatment compared with traditional wires and brackets, is likely to boost Invisalign adoption in the upcoming second quarter.
The latest Invisalign innovations for the Align Digital Platform, including the ClinCheck Live Update, the Invisalign Practice App, Invisalign Personalized Plan, Invisalign Smile Architect and the Cone Beam Computed Tomography integration feature for ClinCheck digital treatment planning software, are likely to have fortified Invisalign utilization.
As the economies around the world return to normalcy, amid COVID-19 concerns, we anticipate Invisalign case volumes to rebound across the Americas and international regions. However, the ongoing conflict in Ukraine and the heightened volatility in foreign exchange rates might create hindrances to recovery, hampering business performance in Q2.
Robust sales contributions from the newly-launched Invisalign Go Express system and the Vivera retainers are likely to have benefitted the top line performance in Q2.
The Zacks Consensus Estimate for Clear Aligner revenues is pegged at $867 million, suggesting an increase of 3.1% from the year-ago quarter’s reported figure.
Imaging Systems & CAD/CAM Services Business
Align Technology is expected to have gained from robust iTero scanner services revenues, as it did in the previous quarter. The company has been witnessing continued growth in the iTero scanner installed base, with strong adoption of the iTero Element 5D Plus imaging system. This growing uptake of iTero scanners is likely to have sustained, benefiting the company’s top-line growth.
The continued rise in intraoral digital scans used for Invisalign case submissions signals an enhanced digital adoption within dental offices. In Q1, total worldwide intraoral digital scans submitted to start an Invisalign case increased to 87.1% on a year-over-year basis. We anticipate this trend to have continued in the to-be-reported quarter, advancing business performance.
The company’s second-quarter results are likely to have benefited from exocad CAD/CAM products and services revenues. These offerings, including the restorative dentistry, implantology, guided surgery and smile design products, extend the Align Digital Platform toward fully integrated interdisciplinary end-to-end workflows.
The Zacks Consensus Estimate for this segment’s revenues is pegged at $176 million, indicating an upsurge of 3.7% from the year-ago quarter’s reported figure.
Q2 Estimates
The Zacks Consensus Estimate for the company’s second-quarter 2022 revenues is pegged at $1.01 billion, suggesting a decline of 0.5% from the year-ago reported figure.
The Zacks Consensus Estimate for its second-quarter 2022 EPS of $2.27 suggests a 25.3% fall from the year-ago reported figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here, as you can see:
Earnings ESP: The company has an Earnings ESP of -0.22%. 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 #4 (Sell).
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Merck has a long-term earnings growth rate of 10.1%. MRK’s earnings yield of 7.70% compares with the industry’s 7.69%.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +5.07% and a Zacks Rank of #2. Alcon is expected to release second-quarter 2022 results on Aug 16.
Alcon's long-term earnings growth rate is estimated at 14.3%. ALC’s earnings yield of 3.38% compares with the industry’s (7.97%).
QuidelOrtho Corporation (QDEL - Free Report) currently has an Earnings ESP of +9.17% and a Zacks Rank of #2. QuidelOrtho is expected to release second-quarter fiscal 2022 results on Aug 4.
QDEL’s earnings yield of 15.22% compares favorably with the industry’s (-2.39%).
Image: Bigstock
Align Technology (ALGN) to Post Q2 Earnings: What's in Store?
Align Technology, Inc. (ALGN - Free Report) is set to release second-quarter 2022 results on Jul 27, after the closing bell.
The company reported adjusted earnings per share of $2.13 during the last reported quarter, which missed the Zacks Consensus Estimate by 4.9%. The company beat earnings estimates in the trailing three quarters and missed on one occasion, the average surprise being 9%.
Let’s look at how things have shaped up prior to this announcement.
Factors at Play
Total Clear Aligner
Align Technology is likely to gain from increasing clear aligners shipments to Invisalign doctors worldwide. The company witnessed a greater uptake of clear aligners, especially first-time customers. Analysts expect this trend to continue in the to-be-reported quarter, aiding sales growth.
Strong potential exists particularly in the teen segment, where the company recorded a 6% year-over-year improvement in Q1. To take advantage of the enormous possibility presented by teen orthodontics, the company introduced a new Invisalign Teen Subscription Program in the United States and Canada in April 2022. This program intends to help expand Invisalign adoption among teens, the largest segment of the orthodontic market. Also, Align Technology’s direct-to-teen campaign in EMEA, which educates teens on the benefits of Invisalign treatment compared with traditional wires and brackets, is likely to boost Invisalign adoption in the upcoming second quarter.
The latest Invisalign innovations for the Align Digital Platform, including the ClinCheck Live Update, the Invisalign Practice App, Invisalign Personalized Plan, Invisalign Smile Architect and the Cone Beam Computed Tomography integration feature for ClinCheck digital treatment planning software, are likely to have fortified Invisalign utilization.
Align Technology, Inc. Price and EPS Surprise
Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote
As the economies around the world return to normalcy, amid COVID-19 concerns, we anticipate Invisalign case volumes to rebound across the Americas and international regions. However, the ongoing conflict in Ukraine and the heightened volatility in foreign exchange rates might create hindrances to recovery, hampering business performance in Q2.
Robust sales contributions from the newly-launched Invisalign Go Express system and the Vivera retainers are likely to have benefitted the top line performance in Q2.
The Zacks Consensus Estimate for Clear Aligner revenues is pegged at $867 million, suggesting an increase of 3.1% from the year-ago quarter’s reported figure.
Imaging Systems & CAD/CAM Services Business
Align Technology is expected to have gained from robust iTero scanner services revenues, as it did in the previous quarter. The company has been witnessing continued growth in the iTero scanner installed base, with strong adoption of the iTero Element 5D Plus imaging system. This growing uptake of iTero scanners is likely to have sustained, benefiting the company’s top-line growth.
The continued rise in intraoral digital scans used for Invisalign case submissions signals an enhanced digital adoption within dental offices. In Q1, total worldwide intraoral digital scans submitted to start an Invisalign case increased to 87.1% on a year-over-year basis. We anticipate this trend to have continued in the to-be-reported quarter, advancing business performance.
The company’s second-quarter results are likely to have benefited from exocad CAD/CAM products and services revenues. These offerings, including the restorative dentistry, implantology, guided surgery and smile design products, extend the Align Digital Platform toward fully integrated interdisciplinary end-to-end workflows.
The Zacks Consensus Estimate for this segment’s revenues is pegged at $176 million, indicating an upsurge of 3.7% from the year-ago quarter’s reported figure.
Q2 Estimates
The Zacks Consensus Estimate for the company’s second-quarter 2022 revenues is pegged at $1.01 billion, suggesting a decline of 0.5% from the year-ago reported figure.
The Zacks Consensus Estimate for its second-quarter 2022 EPS of $2.27 suggests a 25.3% fall from the year-ago reported figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here, as you can see:
Earnings ESP: The company has an Earnings ESP of -0.22%. 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 #4 (Sell).
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Merck & Co., Inc. (MRK - Free Report) has an Earnings ESP of +7.18% and a Zacks Rank of #2. The company will release second-quarter 2022 results on Jul 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
Merck has a long-term earnings growth rate of 10.1%. MRK’s earnings yield of 7.70% compares with the industry’s 7.69%.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +5.07% and a Zacks Rank of #2. Alcon is expected to release second-quarter 2022 results on Aug 16.
Alcon's long-term earnings growth rate is estimated at 14.3%. ALC’s earnings yield of 3.38% compares with the industry’s (7.97%).
QuidelOrtho Corporation (QDEL - Free Report) currently has an Earnings ESP of +9.17% and a Zacks Rank of #2. QuidelOrtho is expected to release second-quarter fiscal 2022 results on Aug 4.
QDEL’s earnings yield of 15.22% compares favorably with the industry’s (-2.39%).
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.