Bearish Tech stock to watch: Align Technology, Inc. (NASDAQ: ALGN)

Free $100 Forex No-Deposit Bonus

Align Technology, Inc. (NASDAQ: ALGN) stock fell 2.9% on 30th January, 2020 (as of 11:13 am GMT-5; Source: Google finance) after the company reduced the first-quarter expectations because of the coronavirus threat. The company has reported fourth-quarter net income of $121.3 million, compared to $97.4 million, in the year-ago period. As of December 31, 2019, ALGN had $868.6 million in cash, cash equivalents and marketable securities compared to $744.5 million as of December 31, 2018.

ALGN in the fourth quarter of FY 19 has reported the adjusted earnings per share of $1.53, while adjusted revenue growth of 21.7 percent to $649.79 million in the fourth quarter of FY 19. Q4’19 clear aligner revenues were up 22.0% year-over-year to $543.6 million, and Q4’19 scanner and services revenues were up 20.2% year-over-year to $106.2 million. Q4’19 Invisalign volume was 413.7 thousand cases, which is up 23.9% year-over-year.

Moreover, For the Americas and International regions, Q4’19 Invisalign volume was up 19.3% and 30.1% year-over-year, respectively. Q4’19 Invisalign volume for teenage patients was up 33.1% year-over-year to 116 thousand cases. Q4’19 operating income was up 25.5% year-over-year to $151.2 million resulting in an operating margin of 23.3%.

Additionally, in Q4’19, the company had repurchased approximately 389K shares of the common stock at an average price of $258.67 per share and have $100 million remaining available for repurchase under the May 2018 Repurchase Program.

The company expects first-quarter earnings to be in the range of $18.65 to $18.74 a share, including a $17.70 a share for a one-time tax benefit. The company expects first-quarter revenue to be in the range of $615 million to $630 million. Align said that because of coronavirus concerns it is forecasting lower revenue for China, which is the company’s largest market and represents about 8% of its total revenue. Further, for Q1’20, the company’s outlook reflects approximately 20,000 to 25,000 fewer Invisalign case shipments and approximately $30 million to $35 million less revenues for Invisalign and iTero products sold in China. The company will also be absorbing $3 million to $4 million in idle China plant capacity costs which we expect will result in approximately a 0.5% gross margin impact. In addition, for the first quarter 2020, the company expects Non-GAAP operating margin to be in the range of 19.5% to 20.5%.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.