ALGN Earnings Prediction
The chart below shows how ALGN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ALGN sees a +1.27% change in stock price 10 days leading up to the earnings, and a -5.16% change 10 days following the report. On the earnings day itself, the stock moves by +0.37%. This data can give you a slight idea of what to expect for the next quarter's release.
ALGN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
995.22M
4.02%
1.77%
Gross Margin
70.03%
0.07%
0.44%
Operating Margin
21.51%
11.34%
29.58%
Net Margin
10.43%
-19.52%
-12.06%
EPS
1.39
-15.24%
-10.32%
No Data Available
ALGN Earnings Analysis
Align Technology Inc Corporation (ALGN.O) Earnings Conference Call
Positive
Q4 Revenue Increase: Q4 total revenues reached $995 million, marking a 4% year-over-year increase, driven by a 14.9% growth in Systems and Services revenues and a 1.6% growth in Clear Aligner revenues.
Clear Aligner Volume Growth: Clear Aligner volumes grew 6.1% year-over-year in Q4, with significant increases in shipments across EMEA, APAC, and LatAm regions, indicating strong demand and market penetration.
Revenue and Volume Growth: For the full year 2024, total revenues reached $4 billion, with Clear Aligner volumes totaling 2.5 million cases, both reflecting a 3.5% year-over-year growth.
Invisalign Practitioner and Patient Growth: The number of active Invisalign trained practitioners reached 272,000, and the total number of Invisalign patients treated increased to 19.5 million, showcasing strong customer growth and engagement.
Ancillary Services Growth: Q4 non-case revenues increased significantly, with total Doctor Subscription Program touch-up cases up nearly 37% year-over-year, indicating robust growth in ancillary services.
Negative
Clear Aligner ASP Decline: Q4 Clear Aligner ASPs were lower than expected, primarily due to unfavorable foreign exchange, resulting in a $10 decrease per case shipment sequentially and a $55 decrease year-over-year.
Rising Operating Expenses: Operating expenses for Q4 increased by 11% year-over-year to $552.8 million, driven by higher restructuring, advertising, and marketing expenses, indicating rising cost pressures.
Operating Income Decline: Q4 operating income of $144.1 million led to an operating margin of 14.5%, down 2.1 points sequentially and down 3.4 points year-over-year, reflecting declining profitability.
Interest Income Decline: Interest and other income for Q4 was a net expense of $3.4 million, a significant decline from income of $3.6 million in Q3 2024, primarily due to unfavorable foreign exchange movements.
Q1 2025 Revenue Decline: Q1 2025 revenue guidance is projected to decline sequentially to between $965 million and $985 million, primarily due to lower capital equipment sales and unfavorable foreign exchange impacts.
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ALGN Earning Call Sentiment
Align Technology, Inc. (NASDAQ:ALGN) Q4 2024 Earnings Call Transcript
ALGN.O
-3.85%Positive
The earnings call presents a mixed picture: revenue and volume growth are positive, but margins and net income have declined. The Q&A section reveals management's vague responses on competition and FX impact, raising concerns. Despite some positive elements like DSP growth and international expansion, the lack of clear guidance and declining margins suggest a neutral outlook.
