Align Beats Q2 Estimates, But Imaging Slump Drags Shares 5%
ALGN sits 39% above its 52-week low of $122.
Summary
Align Technology posted a modest Q2 beat with adjusted EPS of $2.64 on revenue of $1.06B, edging past consensus. However, a 10.8% decline in Imaging Systems revenue to $185.3M and a shift toward lower-priced scanners weighed on sentiment, sending shares down over 5% after hours. The company maintained its full-year revenue growth outlook of 3-4% and guided Q3 revenue to $1.0B-$1.02B, in line with the midpoint of estimates. This follows earlier today's announcements of a boosted $400M-$500M buyback and board changes after Elliott Management engagement. The earnings beat is modest, but the Imaging weakness and post-market selloff introduce near-term uncertainty.
At the time of this announcement, ALGN was trading at $169.99 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $12.9B. The 52-week trading range was $122.00 to $208.31. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.