Align Technology (ALGN) Tops Q1 EPS by 6c, Revenues Beat; Offers 2Q EPS Guidance Above Consensus, 2Q Revenue Mid-Point Guidance Above Consensus

Align Technology (NASDAQ: ALGN) reported Q1 EPS of $0.89, $0.06 better than the analyst estimate of $0.83. Revenue for the quarter came in at $549 million versus the consensus estimate of $530.4 million.

• Q1 revenues up 25.6% year-over-year to a record $549.0 million
• Q1 Invisalign volume up 28.3% year-over-year to 349.2 thousand cases
• Q1 scanner and services revenues up 55.1% year-over-year to $79.8 million
• Q1 Invisalign cases for teenage patients up 41.1% year-over-year to 97.4 thousand
• Q1 operating income of $87.7 million included impairments and other charges of $29.8 million related to the U.S. Invisalign Store closures
• Q1 net profit of $71.8 million and $0.89 diluted EPS

Commenting on Align’s Q1 2019 results, Align Technology President and CEO Joe Hogan said, “Our first quarter was a very good start to the year with revenues, volumes, gross margin, and EPS above our guidance. Record Q1 revenues and Invisalign volumes were up 25.6% and 28.3% year-over-year, respectively, reflecting continued strong growth across all geographies and customer channels, as well as strong iTero scanner and services revenues, which were up 55.1% year-over-year. Q1 sequential growth was driven primarily by North America and the EMEA region, reflecting strength across the Invisalign product portfolio. We also saw a nice uptick in adoption of Invisalign treatment with record utilization overall, as well as expansion of our customer base which totaled 57,000 active doctors worldwide in Q1.”

GUIDANCE:

Align Technology sees Q2 2019 EPS of $1.74-$1.54, versus the consensus of $1.24. Align Technology sees Q2 2019 revenue of $590-600 million, versus the consensus of $592.75 million.​

• Invisalign case shipments in the range of 380 thousand to 385 thousand, up approximately 26% to 27% over the same period a year ago
• Operating margin in the range of 24.5% to 25.4%

For earnings history and earnings-related data on Align Technology (ALGN) click here.

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