TEMPE, Ariz. - Align (NASDAQ:ALGN) Technology, Inc. (NASDAQ:ALGN) reported mixed third quarter results and provided disappointing guidance, sending shares down 5% in after-hours trading on Wednesday.
The clear aligner maker posted adjusted earnings per share of $2.35, beating analyst estimates of $2.31. However, revenue of $977.9 million fell short of expectations for $989.59 million.
For the fourth quarter, Align forecast revenue between $995 million and $1.015 billion, below the consensus estimate of $1.02 billion. The weak outlook overshadowed the earnings beat in the third quarter.
"Overall, Q3'24 results were mixed and reflect strong Systems and Services year-over-year revenue growth, as well as good Clear Aligner volume in the Asia Pacific, EMEA and Latin America regions, partially offset by declines in the U.S.," said Align Technology President and CEO Joe Hogan.
Hogan noted that the underlying dental market in the U.S. remains sluggish, citing similar trends reported by doctor customers. Clear Aligner volume grew 2.5% YoY to 617,200 cases, while Clear Aligner revenue declined 1% to $786.8 million.
The company's Imaging Systems and CAD/CAM Services segment saw 15.6% YoY revenue growth to $191 million in Q3.
Align also announced a restructuring plan that will eliminate or transfer certain positions globally. As a result, the company expects to incur restructuring charges of approximately $30 million in Q4 related to severance costs.
Despite the revenue miss and soft guidance, Align's Q3 non-GAAP operating margin of 22.1% came in better than expected and improved from 21.8% a year ago.
The company plans to repurchase up to $275 million of its common stock beginning in Q4 2024.
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