Align Technology shares tumble on weak Q1 guidance

EditorLuke Juricic
Published 02/06/2025, 05:30 AM
Align Technology shares tumble on weak Q1 guidance

TEMPE, Ariz. - Align Technology , Inc. (NASDAQ:ALGN) reported fourth quarter earnings that narrowly missed analyst estimates and provided weaker-than-expected guidance for the first quarter, sending shares down 6.8% in after-hours trading.

The maker of Invisalign clear aligners posted adjusted earnings per share of $2.44 for Q4, just below the $2.46 consensus estimate. Revenue came in at $995.2 million, up 4.0% YoY but short of the $1 billion analysts were expecting.

For the first quarter, Align forecast revenue between $965 million to $985 million, well below Wall Street’s projection of $1.03 billion. The company cited unfavorable foreign exchange rates and lower capital equipment sales due to seasonal factors for the soft outlook.

"I am pleased to report that Q4 total revenues, Clear Aligner volumes, and Systems and Services revenues were in line with our Q4 outlook," said Align Technology CEO Joe Hogan. He noted Clear Aligner shipments grew 6.1% YoY to 628,730 cases.

However, investors appeared focused on the disappointing guidance, sending Align shares down 6.8% in after-hours trading following the release.

For full-year 2024, Align reported revenue of $4.0 billion, up 3.5% from 2023. The company shipped 2.49 million Clear Aligner cases during the year, also a 3.5% increase.

Looking ahead to 2025, Align expects "low single digits" revenue growth, with Clear Aligner volume growth in the "mid-single digits." The company anticipates unfavorable foreign exchange rates will impact results by approximately 2 percentage points.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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