ALGN Gears Up for Q4 Earnings: What Lies Ahead for the Stock?

Align Technology, Inc. ALGN is set to release fourth-quarter 2024 results on Feb. 5, after the closing bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company posted adjusted earnings per share (EPS) of $2.35 in the last reported quarter, which topped the Zacks Consensus Estimate by 1.7%. Align Technology beat on earnings in each of the trailing four quarters, the average surprise being 6.18%.ALGN’s Q4 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $997.0 million, suggesting growth of 4.2% from the year-ago reported figure.The Zacks Consensus Estimate for earnings is pinned at $2.43 per share, indicating a 0.4% improvement from the year-ago recorded actuals.Estimate Revision Trend Ahead of ALGN’s Q4 EarningsEstimates for Align Technology’s fourth-quarter earnings have moved down marginally 0.4% to $2.43 per share in the past 30 days.Let's take a look at how things might have shaped up for the MedTech major prior to the announcement.Factors at PlayClear Aligner BusinessSimilar to the last reported quarter, Align Technology is likely to have witnessed strength in Clear Aligner volumes for teens and growing kids, reflecting growth across regions, especially from Invisalign First in the APAC and EMEA regions. In the to-be-reported quarter, non-case revenues might have witnessed a year-over-year increase owing to the sustained growth of Vivera retainers and Doctor Subscription Program touch-up cases. However, pronounced seasonality and soft dental markets in the United States might hurt the segment’s revenues in the fourth quarter. In the third quarter, Clear Aligner volume from DSO customers increased year over year, reflecting growth across all regions. The DSO business in United States continued to outpace the retail doctors, driven by the company’s largest DSO partners — SmileDoctors and Heartland Dental. This might have benefited the company’s quarterly top line.Align Technology, Inc. Price and EPS Surprise Align Technology, Inc. price-eps-surprise | Align Technology, Inc. QuoteDuring the third quarter, the Invisalign Palatal Expander System received immense positive feedback. In the fourth quarter, the company had a commercial launch in Singapore and Hong Kong and anticipates the availability of the system across the Asia Pacific region in the coming quarters. Additionally, Invisalign Palatal Expander System received a CE mark in Europe under the Medical Device Regulation and has also completed registration with MHRA for the United Kingdom and overseas territories. These factors, too, might have turned out favorable for Align Technology’s fourth-quarter revenues. Imaging Systems & CAD/CAM Service BusinessIn the fourth quarter, the Systems & Services business is projected to have witnessed growth, owing to high scanner Average Selling Prices (“ASPs”) and high non-system revenues driven by iTero Lumina wand upgrades, increased scanner rentals and certified pre-owned (“CPO”) leasing programs. The continuous uptake of the iTero Lumina Scanner with ortho workflow and positive response from customers are likely to have boosted the company’s fourth-quarter revenues. On its third-quarter earnings call, Align Technology launched a few iTero scanner products in selected markets, which include the iTero Design Suite, Align Oral Healthcare Suite and Invisalign Outcome Simulator Pro. Additionally, in the fourth quarter, the company introduced Invisalign Smile Architect software, with Multiple Treatment Plans allowing doctors to visually compare and modify orthodontic-only and ortho-restorative treatment plans side by side. We expect these developments to have positively impacted the company’s fourth-quarter top line.What Our Quantitative Model Predicts for ALGNPer our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, that is not the case here, as you can see below:Earnings ESP: Align Technologies has an Earnings ESP of -0.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #4.Stocks Worth a LookHere are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.Argenx ARGX has an Earnings ESP of +44.82% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The company is expected to release fourth-quarter 2024 results on March 6. The Zacks Consensus Estimate for EPS implies a surge of 196.4% from the year-ago quarter’s reported figure.Arcutis Biotherapeutics ARQT has an Earnings ESP of +7.97% and a Zacks Rank #2 at present. The company is expected to release fourth-quarter 2024 results on Feb. 25. ARQT’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 17.46%. Axogen AXGN has an Earnings ESP of +36.36% and a Zacks Rank #3 at present. The company is likely to release fourth-quarter 2024 results on March 4. The Zacks Consensus Estimate for EPS implies a surge of 166.7% from the year-ago quarter’s reported figure.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Align Technology, Inc. (ALGN): Free Stock Analysis Report AxoGen, Inc. (AXGN): Free Stock Analysis Report argenex SE (ARGX): Free Stock Analysis Report Arcutis Biotherapeutics, Inc. (ARQT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks