Align Technology rises 15% after Q4 2022 beat
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Clear aligner maker Align Technology (NASDAQ:ALGN) added ~15% post-market Wednesday after announcing better-than-expected financials for Q4 2022 results. Despite a ~13% YoY decline, the Tempe, Arizona-based company reported $901.5M revenue for the quarter compared to $881.9M in the consensus as the topline rose ~1% sequentially.
Clear Aligner net revenue beat Street forecasts to reach $731.7M with a ~10% YoY decline as unfavorable forex impact stood at $56.4M compared to the previous year, while Invisalign case shipments exceeded the consensus standing at ~583.7K with a ~8% drop.
Meanwhile, Imaging systems & CAD/CAM net revenue fell ~21% YoY to $169.9M as year-over-year forex headwinds reached $11.2M.
Net revenue for the full year fell ~6% YoY to $3.7B as Invisalign Case Shipments contracted ~7% YoY to ~2.4M driving down clear aligner net revenue ~5% YoY to $3.1B.
Quarterly operating income was $112.7M indicating a ~13% operating margin, while the full-year operating income reached $642.6M, and the operating margin reached ~17%. The companyâs adjusted earnings per share stood at $1.73 compared to $1.53 in the consensus.
Citing macro concerns, global operational challenges, and uncertainty, Align (ALGN) didnât issue 2023 revenue guidance. However, the company expects its Q1 2023 revenues to remain steady sequentially and the operating margin to rise ~1% point on a reported basis sequentially.
Meanwhile, COVID-related market weakness in China is expected to lead to a sequential drop in clear aligner volumes in Q1 2023, partially offset by market stability in the Americas and EMEA regions.
Read: Seeking Alpha contributor Gytis Zizys issued a Strong Sell on Align (ALGN) in January despite the recent drop in its share price.