Align Technology (ALGN) Tops Q1 EPS by 13c; offers guidance

Align Technology (NASDAQ: ALGN) reported Q1 EPS of $2.13, $0.13 better than the analyst estimate of $2.00. Revenue for the quarter came in at $979.3 million versus the consensus estimate of $977.54 million.

GUIDANCE:

Align Technology sees Q2 2025 revenue of $1.05-1.07 billion, versus the consensus of $1.057 billion.

We expect Q2’25 Clear Aligner volume to be up sequentially and Q2’25 Clear Aligner ASPs to also be up sequentially, due to favorable foreign exchange at current spot rates, partially offset by the continued product mix shift to non-comprehensive clear aligner products with lower list prices.
We expect Q2’25 Systems and Services revenues to be up sequentially as we continue to ramp up the iTero Lumina™ scanner with restorative software.
We expect Q2’25 worldwide gross margin to be up sequentially primarily from higher ASPs and Clear Aligner volume.
We expect our Q2’25 GAAP operating margin and Q2’25 non-GAAP operating margin to be up sequentially by approximately 3 points each for GAAP and non-GAAP operating margin.

For fiscal 2025:

We expect 2025 Clear Aligner volume growth to be up approximately mid-single digits year-over-year.
We expect 2025 Clear Aligner ASPs to be down year-over-year due to continued product mix shift to non-comprehensive clear aligner products with lower list prices and continued growth in our emerging markets where those products may carry lower list prices.
We expect 2025 Systems and Services year-over-year revenues to grow faster than Clear Aligner revenues.
We expect 2025 year-over-year revenue growth to be in the range of 3.5% to 5.5% at current spot rates.
We expect fiscal 2025 GAAP operating margin to be approximately 2 points above the 2024 GAAP operating margin, and we expect the 2025 non-GAAP operating margin to be approximately 22.5%.
We expect our investments in capital expenditures for fiscal 2025 to be between $100 million and $150 million. Capital expenditures primarily relate to technology upgrades as well as manufacturing capacity in support of our ongoing business.

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

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