Wealth Enhancement Advisory Services LLC increased its stake in Align Technology, Inc. (NASDAQ:ALGN – Free Report) by 38.9% during the third quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 15,551 shares of the medical equipment provider’s stock after acquiring an additional 4,359 shares during the quarter. Wealth Enhancement Advisory Services LLC’s holdings in Align Technology were worth $2,029,000 at the end of the most recent quarter. Get Align Techn ...

Core Insights - Align Technology, Inc. (ALGN) reported second-quarter 2025 adjusted earnings per share (EPS) of $2.49, a 3.3% increase year-over-year, but missed the Zacks Consensus Estimate by 3.1% [1] - The company's revenues for the quarter were $1.01 billion, down 1.6% year-over-year, and also fell short of the Zacks Consensus Estimate by 4.6% [2] - Following the earnings announcement, ALGN's stock experienced a significant decline of 34.2% in after-market trading [1] Revenue Breakdown - ALGN operates in two reportable segments: Clear Aligner and Imaging Systems & CAD/CAM Services [3] - Revenues from the Clear Aligner segment decreased by 3.3% year-over-year to $804.6 million, despite a favorable foreign exchange impact of 0.6% [3] - Imaging Systems & CAD/CAM Services revenues increased by 5.6% to $207.8 million, also benefiting from a 0.5% favorable currency impact [3] Margin Analysis - Gross profit for the second quarter was $708.1 million, a decline of 2% year-over-year, with a gross margin of 69.9%, down 32 basis points [4] - Selling, General and Administrative (SG&A) expenses decreased by 0.8% to $448.7 million, while Research and Development (R&D) expenses rose by 4.6% to $96.4 million [4] - Operating income was $163 million, down 8.5% year-over-year, leading to an operating margin contraction of 122 basis points to 16.1% [4] Financial Position - At the end of the second quarter, ALGN had cash and cash equivalents of $901.2 million, up from $873 million at the end of the first quarter [5] - Net cash provided by operating activities was $181.3 million, compared to $188.5 million at the end of the second quarter of 2024 [5] Stock Repurchase Program - During the quarter, ALGN repurchased approximately 585.1 thousand shares at an average price of $164.14 per share, completing a $225 million open market repurchase initiated in the first quarter of 2025 [6] - This marked the completion of the entire $1 billion stock repurchase program approved in January 2023 [6] Future Outlook - For the full year 2025, ALGN expects Clear Aligner revenue growth to be flat to slightly up from 2024, with Systems and Services revenues anticipated to grow faster [9] - The Zacks Consensus Estimate for 2025 revenues is $4.16 billion, indicating a 3.9% year-over-year growth [9] - For the third quarter, ALGN projects worldwide revenues between $965 million and $985 million, while the Zacks Consensus Estimate is $1.04 billion [11] Additional Insights - ALGN achieved a record number of teen cases, treating over 6 million teens and kids with the Invisalign system globally [14] - Despite the challenges, Clear Aligner volume grew in APAC and EMEA regions, driven by increased utilization among orthodontists and general practitioners [13]