Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.


Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?


Please Try Again {{ error }}

Send my password

An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Align Technology Reports Strong Q2 Growth but China Sales Worries Leave Investors Frowning

Streetwise Reports, Streetwise Reports
0 Comments| July 26, 2019

{{labelSign}}  Favorites

Orthodontic and GP Dental medical device maker Align Technology announced a 24.6% increase in sales volume of its Invisalign products in its Q2/19 earnings report, but investors are not smiling much over China growth concerns as the shares of the company have fallen more than 25%.

Click to enlarge

Orthodontic and GP dental medical device maker Align Technology Inc. (ALGN:NASDAQ) yesterday announced second quarter earnings ended June 30, 2019. The firm reported total revenues in Q2/19 were $600.7 million, up 22.5% year-over-year. Operating income in Q2/19 was $176.5 million, up 43.8% year-over-year, resulting in an operating margin of 29.4% and a net profit of $147.1 million in the quarter, or $1.83 per diluted earnings per share (EPS). The firm noted that Q2/19 operating expense included a $51 million benefit from the ClearCorrect settlement with Straumann, which increased Q2/19 operating margin by approximately 8 points and benefited EPS by $0.57.

Invisalign volume in Q2/19 was 377,000 cases, up 24.6% year-over-year, composed of 16% growth in the Americas and 36.7% in international regions. Invisalign volume for teenage patients in Q2/19 was 103,700 cases, up 32.2% year-over-year, and Q2/19 scanner and services revenues were $104.0 million, up 82.4% year-over-year.

Align Technology President and CEO Joe Hogan said, "Our Q2/19 revenues were at the high-end of our guidance, reflecting Invisalign volume growth primarily from international doctors, as well as very strong sales from iTero scanner and services with Q2/19 Invisalign volumes up 24.6% year-over-year. . .In Q2/19, total Invisalign case shipments were lower than expected, primarily due to a softness in China related to a tougher consumer environment and slower growth in young adult case in North America...given the uncertainty in China, our outlook for Q3/19 reflects a more cautious view for growth in the Asia Pacific region."

The company further provided guidance for Q3/19 for Net revenues in the range of $585 million to $600 million, up approximately 16%-19% over Q3/18 and Diluted EPS in the range of $1.09 to $1.16. Align also stated in the outlook that it expects to repurchase at least $100 million of its stock (shares) in the open market in Q3/19.

Align Technology is a medical device company that designs, manufactures and markets the Invisalign system, which according to the company is the world's leading invisible orthodontic product,and and the iTero Intraoral scanning systems and services. The Invisalign system and iTero Intraoral scanning system and OrthoCAD digital services are available to general practitioner dentists, orthodontists and other dental specialists, and the firm provides training, clinical education programs and the tools needed for dental industry adoption.

Align's Clear Aligner segment consists of its Invisalign System, Express/Lite (Non-Comprehensive Products) and Vivera Retainers, along with its training and ancillary products for treating malocclusion (Non-Case). The firm's Scanner and Services segment consists of intra-oral scanning systems and other services available with the intra-oral scanners that provide digital alternatives to the traditional cast models and includes its iTero scanner and OrthoCAD.

ALGN shares opened much lower today at $219.28 (-$55.88, -20.63%) from yesterday's closing price of $275.16, and traded down more than 25%, closing at $200.90 (-$74.26, -26.99%).

1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.


{{labelSign}}  Favorites


No comments yet. Be first to comment!

Leave a Comment

You must be logged in to be able to post a comment.

Get the latest news and updates from Stockhouse on social media


Featured Company