Financial performance in 2Q17
In 2Q17, Align Technology (ALGN) reported revenue of ~$356.5 million, which was YoY (year-over-year) growth of ~32.3% and sequential growth of ~14.9%. The company’s Clear Aligner segment accounted for $321.0 million of the company’s 2Q17 revenue, which was 31.9% higher YoY. The Scanners segment reported YoY growth of around 36.7%, for revenue of ~$35.4 million.
In 2Q17, Align Technology witnessed a solid 31.0% YoY rise in Invisalign shipments, amounting to ~231,890. The company’s diluted EPS (earnings per share) were ~$0.85, a robust YoY rise of ~37.1%.
Align Technology managed to surpass Wall Street expectations for revenue, EPS, volumes, and margins in 2Q17. If the company manages similar performance in future quarters, its stock and the SPDR S&P 500 ETF (SPY) could benefit. Align Technology makes up ~0.06% of SPY.
Analysts’ recommendations for Align Technology
Of the 13 analysts covering Align Technology in August 2017, eight rated the company a “strong buy,” and five rated it a “buy.”
Peer ratings in August 2017
Of the 16 analysts covering 3M (MMM) in August 2017, ~37.5% rated the company a “buy.” Approximately 76.5% of the 17 analysts covering Danaher (DHR) gave it a “buy” recommendation, and 62.5% of the 16 analysts covering Dentsply Sirona (XRAY) rated it a “buy.” In the next part, we’ll look at Align Technology’s revenue growth prospects.