Dental technology company Align Technology (NASDAQ: ALGN) will be announcing earnings results this Wednesday afternoon. Here’s what to expect.
Align Technology missed analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $1.01 billion, down 1.6% year on year. It was a disappointing quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.
Is Align Technology a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Align Technology’s revenue to be flat year on year at $974.4 million, slowing from the 1.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.41 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Align Technology has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Align Technology’s peers in the healthcare equipment and supplies segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Intuitive Surgical delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 3%, and Neogen reported a revenue decline of 3.6%, topping estimates by 2.6%. Intuitive Surgical traded up 13.9% following the results while Neogen was also up 3.7%.
Read our full analysis of Intuitive Surgical’s results here and Neogen’s results here.
There has been positive sentiment among investors in the healthcare equipment and supplies segment, with share prices up 7% on average over the last month. Align Technology is up 7.8% during the same time and is heading into earnings with an average analyst price target of $175.07 (compared to the current share price of $136.28).
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