Align Technology Inc ALGN Earnings Preview: Key Metrics and Projections
- Analysts predict Align Technology Inc (NASDAQ:ALGN) will report earnings per share (EPS) of $2.43, with revenues anticipated at around $999.2 million for the December 2024 quarter.
- The company is expected to show a modest year-over-year EPS increase of 0.4%, alongside a corresponding 4.2% revenue growth.
- Align’s strong financial position is evidenced by a P/E ratio of approximately 36.53 and a low debt-to-equity ratio of approximately 0.03.
Align Technology Inc (NASDAQ:ALGN) is a noteworthy player in the dental industry, best known for its market-leading Invisalign tooth-aligning system. The company plans to announce its quarterly earnings on February 5, 2025, with analysts anticipating an earnings per share (EPS) of $2.43 and total revenue projected around $999.2 million. These numbers provide valuable insights into the company’s ongoing financial health and performance metrics.
For the upcoming quarter ending December 2024, Align Technology is expected to report a slight year-on-year EPS growth of 0.4%. The company is also projected to see a revenue increase of 4.2%, nearing $999 million. However, it should be noted that the consensus EPS estimate has been adjusted downward by 1% over the last month, reflecting a reevaluation of the firmโs outlook.
The performance of Align Technology’s stock could experience considerable fluctuations based on its ability to meet, exceed, or fall short of these analysts’ expectations. A robust performance relative to these estimates may lead to a potential stock price boost, whereas failing to meet these benchmarks could result in downward pressure on the stock. The upcoming earnings call will play an essential role in understanding the sustainability of immediate price shifts and future earnings scenarios.
Looking into the financial metrics, Align Technology showcases a P/E ratio of roughly 36.53, reflecting investor willingness to pay for its earnings. Additionally, its price-to-sales ratio stands at around 4.07, highlighting the market perception of its revenue streams. The enterprise value to sales ratio is estimated at 3.84, demonstrating the market’s valuation of the company’s total sales compared to its enterprise value.
Maintaining a low debt-to-equity ratio of approximately 0.03, Align Technology exhibits prudent debt management in its financial structuring. The current ratio near 1.26 signifies its capability of settling short-term financial obligations with existing short-term assets. These metrics underscore Align Technologyโs robust financial standing in anticipating positive outcomes aligned with market expectations for the upcoming earnings reports.