Core Viewpoint - The Zacks Medical - Dental Supplies industry is experiencing strong demand driven by patient preferences for convenient care and policy initiatives to enhance access to dental health services, with a positive outlook bolstered by a recent U.S.-China trade deal [1][2]. Industry Overview - The global dental industry encompasses companies that design, develop, manufacture, and market dental products, including consumables and laboratory products, with a recovery in sales following pandemic disruptions [3]. - The dental care sector is guided by recommendations from the American Dental Association and the CDC, with patient volumes increasing steadily despite COVID-19 uncertainties [4]. Major Trends - The aging population in the U.S. is a significant driver for the dental equipment market, with 55.8 million people aged 65 and above in 2020, leading to increased dental issues [5]. - There is a growing demand for aesthetic and cosmetic dentistry, influenced by media and current trends, which is contributing to the growth of the dental equipment market [6]. - Technological advancements, including digital imaging and AI integration, are enhancing the accuracy and effectiveness of dental treatments [7][8]. - Emerging markets, particularly in Asia-Pacific and the GCC region, are driving growth due to rising disposable incomes and increased awareness of oral health [8]. U.S.-China Trade Deal - The recent trade deal includes a temporary 90-day reduction in tariffs, significantly easing trade tensions and lowering import costs for medical supplies, which is expected to benefit the U.S. medical supplies industry [9]. Industry Performance - The Zacks Medical Dental Supplies industry has outperformed its sector but underperformed the S&P 500 over the past year, with a collective decline of 4.1% compared to a 16.3% decline in the Zacks Medical sector [12]. Current Valuation - The industry is currently trading at a forward P/E of 16.2X, equal to the sector's valuation but lower than the S&P 500's 20.7X, with historical trading ranges between 15.7X and 21X over the past five years [15]. Company Highlights - **Cardinal Health (CAH)**: The company is witnessing strong demand for its services and is expected to benefit from the trade deal, which reduces tariff-related costs. CAH anticipates adjusted EPS in the range of $8.05-$8.15 for fiscal 2025, with double-digit growth expected in fiscal 2026 [18][20][21]. - **Labcorp (LH)**: The company is focused on becoming a preferred development lab, with expected revenue growth of 6.7-8% for 2025. The reduced tariffs will aid in operational efficiency and cost management [24][27][28]. - **Align Technology (ALGN)**: The company is positioned to drive digital innovation in dentistry and expects revenue growth of 3.9% for 2025, benefiting from reduced tariffs on imported components [31][35][36].

Group 1 - Align Technology (ALGN) has recently reached a key level of support and has overtaken the 20-day moving average, indicating a short-term bullish trend [1][3] - The stock has rallied 13% over the past four weeks and currently holds a Zacks Rank 2 (Buy), suggesting potential for further upward movement [3] - There have been 6 upward revisions in earnings estimates for the current fiscal year, with no downward revisions, indicating positive sentiment among analysts [3][4] Group 2 - The 20-day simple moving average is a popular tool among traders, providing insights into short-term price trends and trend reversals [2] - A stock price above the 20-day moving average signals a positive trend, while a price below indicates a potential downward trend [2]

Financial Performance - Total net revenues for Q1 2025 were $979 million, a decrease of 1.8% year-over-year[117] - Net income for Q1 2025 was $93 million, with diluted net income per share of $1.27[117] - For the three months ended March 31, 2025, Clear Aligner net revenues decreased by $20 million compared to the same period in 2024, primarily due to a decrease in ASP and a product mix shift to lower-priced products[121] - Systems and Services net revenues increased by $2 million, driven by a $12 million increase in scanner wand sales, partially offset by a $9 million decrease in scanner system sales[123] - Gross profit for Clear Aligner was $562.1 million with a gross margin of 70.5%, down from $579.1 million and 70.9% in the same period of 2024[124] - Income from operations for Clear Aligner was $260.2 million with an operating margin of 32.7%, down from $286.2 million and 35.0% in 2024[136] Revenue Breakdown - Clear Aligner revenues were $797 million, down 2.5% year-over-year, while case volume increased by 6.2%[117] - Imaging Systems and CAD/CAM Services revenues rose to $182 million, an increase of 1.2% year-over-year[117] - The average selling price for Clear Aligners decreased from $1,350 in Q1 2024 to $1,240 in Q1 2025, an 8.1% decline[117] - Total case volume for Clear Aligners reached 642.3 thousand, up 6.2% from 605.1 thousand in Q1 2024[119] Expenses and Costs - Research and development expenses increased to $97.2 million, representing 9.9% of net revenues, compared to $91.9 million and 9.2% in 2024[131] - Selling, general and administrative expenses decreased to $447.6 million, accounting for 45.7% of net revenues, compared to $451.8 million and 45.3% in 2024[128] - Legal settlement losses of $4.2 million were recorded for the three months ended March 31, 2025, representing 0.4% of net revenues[134] Cash Flow and Capital Expenditures - Cash and cash equivalents stood at $873 million as of March 31, 2025[117] - The company expects capital expenditures for fiscal year 2025 to be between $100 million and $150 million, primarily for technology upgrades and additional manufacturing capacity[148] - For the three months ended March 31, 2025, cash flows from operations were $53 million, driven by a net income of approximately $93 million[150] - Net cash used in investing activities was $25 million, primarily for purchases of property, plant, and equipment[150] - Net cash used in financing activities totaled $207 million, mainly due to $201 million for share repurchases and $20 million for payroll taxes related to equity awards[151] Balance Sheet and Investments - As of March 31, 2025, the company had cash and cash equivalents of $873 million, down from $1,044 million at the end of 2024[147] - The carrying value of investments in privately held companies was $188.2 million as of March 31, 2025, unchanged from December 31, 2024[168] Risks and Economic Factors - The company is exposed to interest rate risk, but an immediate 10% change in interest rates would not have a material adverse impact on future operating results[161] - Foreign currency exchange rate fluctuations could materially impact the company's results of operations and financial condition, with a potential 10% change in exchange rates being significant[165] - Rising inflationary trends have impacted both revenues and costs globally, with uncertainty regarding the ability to offset higher costs through price increases[166] - The company has not historically used derivative financial instruments to manage exposure to interest rate changes[162] Workforce - The number of employees decreased by 2.2% year-over-year to 21,200 as of March 31, 2025[117]

Investors with an interest in Medical - Dental Supplies stocks have likely encountered both Align Technology (ALGN) and Straumann Holding AG (SAUHY) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive ...

Shares of Align Technology (ALGN) have gained 15.8% over the past four weeks to close the last trading session at $177.61, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $233.42 indicates a potential upside of 31.4%.The average comprises 12 short-term price targets ranging from a low of $170 to a high of $275, with a standard deviation of $31.09. While the lowest estimate indic ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? Developed ...

Align Technology (ALGN) 2025 Investor Day Summary Company Overview - **Company**: Align Technology (ALGN) - **Event**: 2025 Investor Day - **Date**: May 06, 2025 Key Industry Insights - **Industry**: Orthodontics and Dental Technology - **Market Dynamics**: The orthodontic market has faced unprecedented challenges, including a three-year decline in patient throughput in the U.S. due to various factors, including COVID-19 and economic conditions [64][65]. Core Points and Arguments 1. **Digital Transformation Journey**: Align Technology has been on a 30-year journey of digital transformation, focusing on making tooth movement a standard of care through digital aligners [12][13][17]. 2. **Clinical Viability**: The clinical viability of Invisalign has improved significantly, now reaching 100%, allowing for any case to be treated with Invisalign [38]. 3. **Consumer Demand**: 84% of prospective teen patients prefer Invisalign clear aligners over traditional braces, indicating a strong market demand [66]. 4. **Product Portfolio Expansion**: The company has expanded its product offerings to include solutions for both orthodontic tooth movement and dental facial orthopedic movement, addressing a broader range of clinical needs for kids and teens [90][91]. 5. **Technological Advancements**: Significant investments have been made in technology, including the development of the iTero Lumina scanner and enhancements to the ClinCheck software, which now allows for faster and more efficient treatment planning [58][96]. 6. **Market Growth**: Align Technology has seen growth in the teen segment, with a notable increase in the adoption of products like Invisalign First and Mandibular Advancement [54][67]. 7. **Global Market Presence**: The company maintains a strong global presence, with significant market shares in various regions, including North America, APAC, and EMEA [52]. Additional Important Insights 1. **Consumer Education**: Align Technology emphasizes the importance of educating both doctors and consumers about the benefits of clear aligners and early orthodontic treatment [85][92]. 2. **Compliance Monitoring**: Tools like Invisalign Virtual Care have been developed to help monitor patient compliance, addressing concerns from parents about the effectiveness of removable aligners [94]. 3. **Competitive Landscape**: The primary competition remains traditional wires and brackets, with Align Technology focusing on reducing friction for orthodontists to adopt digital solutions [69][71]. 4. **Market Share**: Align Technology holds a 10% market share in the orthodontic case starts, with a focus on increasing this share through targeted marketing and product development [61]. 5. **Investment in Technology**: The company has invested hundreds of millions in technology to enhance its digital ecosystem, including machine learning and AI capabilities to improve treatment outcomes [37][39]. This summary encapsulates the key points discussed during the Align Technology 2025 Investor Day, highlighting the company's strategic focus on digital transformation, product innovation, and market growth in the orthodontics industry.

Core Viewpoint - Align Technology, Inc. reported better-than-expected earnings for Q1 2025, with adjusted EPS of $2.13, reflecting a 0.5% increase year-over-year, and surpassing the Zacks Consensus Estimate by 7.6% [1]. However, revenues declined 1.8% year-over-year to $979.3 million, impacted by foreign exchange fluctuations [2][10]. Financial Performance - Adjusted EPS for Q1 2025 was $2.13, up 0.5% from the previous year, while GAAP EPS was $1.27, down 8.6% from $1.39 in Q1 2024 [1]. - Total revenues for Q1 2025 were $979.3 million, a decrease of 1.8% year-over-year, but exceeded the Zacks Consensus Estimate by 0.7% [2]. - Gross profit was $680.1 million, down 2.5% year-over-year, with a gross margin of 70%, a contraction of 51 basis points [4]. Segment Performance - The Clear Aligner segment saw revenues decline by 2.5% year-over-year to $796.8 million, affected by a 3.1% unfavorable foreign exchange impact [3]. - Revenues from Imaging Systems & CAD/CAM Services increased by 1.2% to $182.4 million, also facing a 2.8% negative currency impact [3]. Margins and Expenses - Operating income for Q1 2025 was $135.3 million, down 12.2% year-over-year, with an operating margin of 13.8%, a decrease of 164 basis points [4]. - SG&A expenses decreased by 0.9% to $447.6 million, while R&D expenses increased by 5.8% to $97.2 million [4]. Cash Position and Stock Repurchase - At the end of Q1 2025, cash and cash equivalents stood at $873 million, down from $1.04 billion at the end of Q4 2024 [5]. - The company initiated a stock repurchase plan for the remaining $225 million under the previously approved $1 billion program [6]. Guidance - For the full year 2025, Align Technology expects revenue growth between 3.5% to 5.5%, with a Zacks Consensus Estimate of $4.09 billion, indicating a 2.2% year-over-year growth [8]. - For Q2 2025, the company anticipates revenues between $1.05 billion and $1.07 billion, aligning with the Zacks Consensus Estimate of $1.05 billion [9]. Market Position and Growth - Align Technology reported significant milestones, including 280,000 active Invisalign-trained practitioners and 20 million Invisalign patients treated globally [11]. - The Imaging Systems & CAD/CAM Services segment showed strong growth due to improved scanner and wand revenues from leasing rental program upgrades [11].

Company Performance - Align Technology reported quarterly earnings of $2.13 per share, exceeding the Zacks Consensus Estimate of $1.98 per share, but slightly down from $2.14 per share a year ago [1] - The earnings surprise for this quarter was 7.58%, following a previous quarter where the company also surpassed expectations with earnings of $2.44 per share against an estimate of $2.43 [2] - The company posted revenues of $979.26 million for the quarter, surpassing the Zacks Consensus Estimate by 0.67%, but down from $997.43 million in the same quarter last year [3] Stock Performance - Align Technology shares have declined approximately 14.8% since the beginning of the year, compared to a 5.5% decline in the S&P 500 [4] - The current Zacks Rank for Align Technology is 3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $2.56 on revenues of $1.05 billion, and for the current fiscal year, it is $9.87 on revenues of $4.09 billion [8] - The outlook for the Medical - Dental Supplies industry, to which Align Technology belongs, is currently in the bottom 36% of over 250 Zacks industries, which may impact stock performance [9]

Q1 2025 Financial Performance - Total revenues reached $979.3 million, a decrease of 1.6% quarter-over-quarter and 1.8% year-over-year[31] - Clear Aligner revenues totaled $796.8 million, up 0.3% quarter-over-quarter but down 2.5% year-over-year[31] - Systems and Services revenues amounted to $182.4 million, down 9.2% quarter-over-quarter but up 1.2% year-over-year[31] - GAAP operating margin was 13.4%, a decrease of 1.1 percentage points quarter-over-quarter and 2.1 percentage points year-over-year[31] Clear Aligner Segment - Worldwide Clear Aligner shipments were 642.3K, an increase of 2.2% quarter-over-quarter and 6.2% year-over-year[33] - Clear Aligner average per case shipment price was $1,240, a decrease of $25 sequentially and $110 year-over-year[96] - Teen and Kids Clear Aligner shipments increased 4.5% quarter-over-quarter and 13.3% year-over-year, reaching approximately 226K[49] Systems and Services Segment - Systems and Services revenues increased 1.2% year-over-year[68] - CAD/CAM and Services revenues represent 49.8% of the Systems and Services business[70] Financial Outlook - The company expects Q2 2025 worldwide revenues to be in the range of $1.05 billion to $1.07 billion[125] - The company expects 2025 year-over-year revenue growth to be in the range of 3.5% to 5.5% at current spot rates[125]