Align Technology Beats on Both Top and Bottom Lines
Align Technology (NAS: ALGN) reported earnings on April 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Align Technology beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Gross margin contracted, operating margin dropped, and net margin expanded.
Align Technology booked revenue of $135.1 million. The 10 analysts polled by S&P Capital IQ expected a top line of $128.5 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $104.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.27. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share on the same basis. GAAP EPS of $0.26 for Q1 were 30% higher than the prior-year quarter's $0.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 74.6%, 380 basis points worse than the prior-year quarter. Operating margin was 20.7%, 80 basis points worse than the prior-year quarter. Net margin was 15.5%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $138.5 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $555.8 million. The average EPS estimate is $1.13.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 173 members out of 220 rating the stock outperform, and 47 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give Align Technology a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Align Technology is outperform, with an average price target of $29.00.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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