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Align Technology Strong on Invisalign Growth; Currency Hurts
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On Jun 14, 2016, we issued an updated research report on California-based Align Technology Inc. (ALGN - Free Report) , a developer of aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services.
Align started 2016 on a promising note, with its first-quarter results squarely exceeding the Zacks Consensus Estimate. We are upbeat about the continued strong Invisalign volumes, which in turn drove the top and bottom lines during the quarter.
Total Invisalign Clear Aligner revenues (92% of total revenue) jumped 17.5% year over year in the quarter, driven by Invisalign volume growth across all customer channels and geographies. Per management, on a year-over-year basis, this growth reflects continued adoption of the company’s Invisalign product by existing ortho customers and expansion of its GP dentist base. In addition, Invisalign Teen remains the largest growth opportunity, being the prime orthodontic segment of Align on a global basis.
Particularly, continued momentum in EMEA and APAC, progress in North America, expansion in Align’s low-stage product segment and seasonally strong uptick in teenage patients led to Invisalign volume growth in the reported quarter. During this period, the company also witnessed positive customer response to its new sale structure in North America.
However, continued exposure to exchange rate fluctuations, owing to its extensive overseas business, poses a serious concern for the company in the near term. In fact, Align apprehends that exchange rate fluctuations might harm its business in the near future.
We are concerned about the ongoing economic uncertainty as well, which casts a shadow on Align’s dental procedures. This apart, the competitive landscape also remains an overhang.
Currently, Align carries a Zacks Rank #3 (Hold).
Key Picks in the Sector
Some other top-ranked med-dental/supply stocks are The Cooper Companies Inc. (COO - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Laboratory Corp. of America Holdings (LH - Free Report) . All three stocks carry a Zacks Rank #2 (Buy).
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Align Technology Strong on Invisalign Growth; Currency Hurts
On Jun 14, 2016, we issued an updated research report on California-based Align Technology Inc. (ALGN - Free Report) , a developer of aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services.
Align started 2016 on a promising note, with its first-quarter results squarely exceeding the Zacks Consensus Estimate. We are upbeat about the continued strong Invisalign volumes, which in turn drove the top and bottom lines during the quarter.
Total Invisalign Clear Aligner revenues (92% of total revenue) jumped 17.5% year over year in the quarter, driven by Invisalign volume growth across all customer channels and geographies. Per management, on a year-over-year basis, this growth reflects continued adoption of the company’s Invisalign product by existing ortho customers and expansion of its GP dentist base. In addition, Invisalign Teen remains the largest growth opportunity, being the prime orthodontic segment of Align on a global basis.
Particularly, continued momentum in EMEA and APAC, progress in North America, expansion in Align’s low-stage product segment and seasonally strong uptick in teenage patients led to Invisalign volume growth in the reported quarter. During this period, the company also witnessed positive customer response to its new sale structure in North America.
However, continued exposure to exchange rate fluctuations, owing to its extensive overseas business, poses a serious concern for the company in the near term. In fact, Align apprehends that exchange rate fluctuations might harm its business in the near future.
We are concerned about the ongoing economic uncertainty as well, which casts a shadow on Align’s dental procedures. This apart, the competitive landscape also remains an overhang.
Currently, Align carries a Zacks Rank #3 (Hold).
Key Picks in the Sector
Some other top-ranked med-dental/supply stocks are The Cooper Companies Inc. (COO - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Laboratory Corp. of America Holdings (LH - Free Report) . All three stocks carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>