Align Technology falls after first earnings miss in seven quarters
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Medical device company Align Technology (NASDAQ:ALGN) has lost 18% in the post-market Wednesday after the maker of clear aligners fell short of Street forecasts for the first time in seven quarters.
Revenue for 1Q 2022 reached $973.2M, up ~9% YoY despite a sequential decline of ~6%. 
The company blamed the unfavorable operating environment for the underperformance, highlighting COVID-related impact, Ukraine conflict, weaker economic environment and poor consumer confidence amid inflationary pressures and supply constraints.
âIn addition, with approximately half our business occurring outside of the U.S., unfavorable foreign exchange rates negatively impacted our revenues, margins, and EPS,â Chief Executive Joe Hogan remarked.
Clear Aligner revenues jumped ~8% YoY to $809.7M, while revenue from Imaging Systems and CAD/CAM Services surged ~16% YoY to $163.5M, indicating ~1% and ~24% sequential declines, respectively.
Meanwhile, the net income fell ~33% YoY to $134.3M as operating expenses rose ~11% YoY to $439.5M while the operating margin dropped to ~20%.
With the earnings release, Align (ALGN) announced plans to repurchase $200M worth of the companyâs common stock. The buyback is expected to happen via open market transactions, as an accelerated stock repurchase agreement or via both methods.
In 1Q 2021, Align (ALGN) had recorded ~62% YoY growth and ~25% of operating margin.