Align Technology (ALGN) Q1 Earnings Top, 2024 Sales View Up

Core Viewpoint - Align Technology, Inc. reported strong first-quarter fiscal 2024 results with adjusted earnings per share (EPS) of $2.14, reflecting a 17.6% increase year-over-year and exceeding estimates by 8.1% [1] Revenue Performance - Revenues for the quarter reached $997.4 million, marking a 5.8% year-over-year increase and surpassing the Zacks Consensus Estimate by 2.6% [2] - The Clear Aligner segment generated $817.3 million in revenue, up 3.5% year-over-year, driven by strong volume growth in APAC and EMEA regions [3] - Imaging Systems & CAD/CAM Services revenues increased by 2.4% to $180.2 million, impacted by unfavorable currency effects [3] Margin Analysis - Gross profit for the quarter was $697.8 million, a 5.6% increase year-over-year, with a gross margin of 70.0%, down 9 basis points from the previous year [4] - Operating income rose 15.4% to $154.1 million, with an operating margin expansion of 130 basis points to 15.5% [4] Financial Position - At the end of the first quarter, cash and cash equivalents stood at $865.8 million, down from $937.4 million at the end of the previous quarter [5] - Cumulative net cash from operating activities was $28.7 million, significantly lower than $199.9 million in the same period last year [5] Stock Repurchase Activity - In January 2024, Align Technology repurchased approximately 1.1 million shares at an average price of $230.13, with $650.0 million remaining for future repurchases [6][7] Guidance and Outlook - The company raised its full-year 2024 revenue guidance to a growth of 6-8% year-over-year, with a Zacks Consensus Estimate of $4.04 billion [8] - For Q2 2024, Align Technology anticipates revenues between $1.03 billion and $1.05 billion, aligning with the Zacks Consensus Estimate [8] Strategic Developments - Align Technology completed the acquisition of Cubicure GmbH, enhancing its capabilities in direct 3D printing solutions for aligner manufacturing [9] - The launch of the iTero Lumina intraoral scanner represents a significant advancement in digital scanning technology [9]