Analyzing Key Metrics vs. Estimates

Align Technology (ALGN) reported revenue of $997.43 million for the quarter ended March 2024, showing a 5.8% increase compared to the same period last year. The earnings per share (EPS) came in at $2.14, up from $1.82 in the year-ago quarter. This revenue exceeded the Zacks Consensus Estimate of $971.97 million by 2.62%, while the EPS beat the consensus estimate of $1.98 by 8.08%. Analyzing these metrics helps investors understand the company’s financial performance.

Investors closely examine revenue and earnings changes year-over-year and compare them with Wall Street expectations to make informed decisions. Key metrics play a significant role in driving a company’s top and bottom-line numbers. By comparing these metrics with the year-ago figures and analysts’ estimates, investors can better forecast a stock’s price performance. Align Technology’s performance in the recent quarter reflects its financial health based on these metrics.

In terms of key metrics monitored by Wall Street analysts, Align Technology showed the following results: Clear Aligner Shipments of 605 exceeded the average estimate of 589, Net revenues in Imaging Systems and CAD/CAM Services were $180.18 million compared to the three-analyst average estimate of $163.02 million, indicating a 17.5% year-over-year change. Additionally, Net revenues in Total Clear Aligner reached $817.25 million versus the average estimate of $811.06 million by three analysts, a 3.5% increase from the previous year.

Align Technology’s stock has returned -2.5% over the past month, outperforming the Zacks S&P 500 composite which showed a -3% change. With a Zacks Rank #2 (Buy), the company has the potential to surpass the broader market in the upcoming period. For the latest recommendations from Zacks Investment Research, download the 7 Best Stocks for the Next 30 Days.