Align Technology Shares Plunge 11% as Q1 Earnings, Revenue Take a Nosedive

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Align Technology ($NASDAQ:ALGN), a medical device company, has seen its stock shares drop 11% on Thursday following the release of its Q1 earnings report. The decreased earnings and revenue for the quarter coupled with the continued downward trend of the stock is likely to be of concern for Align Technology investors. With the company’s share price already down from its all-time high, investors may be wary of investing in the company until it can turn things around and demonstrate that it can return to its former state of success.

Stock Price

Monday marked a significant downturn for ALIGN TECHNOLOGY, as their stock price saw a 11% plunge after the company reported their first quarter earnings and revenue. ALIGN TECHNOLOGY opened at $324.9 and closed at $317.3, down by 2.4% from their previous closing price of $325.3. This marks one of the worst performances for the company in recent years, with the stock price dropping significantly in a single day. The Q1 earnings and revenue reported by ALIGN TECHNOLOGY were a far cry from what was expected by analysts.

This has caused investors to reevaluate their outlook for the company and has led to a drastic decrease in the stock price. Overall, it is clear that ALIGN TECHNOLOGY has gone through a difficult quarter and investors are now looking for signs of recovery and improvement. Whether or not the company can bounce back from this dramatic drop in share prices remains to be seen, but for now, the future of the company looks uncertain. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Align Technology. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Align Technology. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Align Technology. More…

Key Ratios Snapshot

Some of the financial key ratios for Align Technology are shown below. More…

Analysis

GoodWhale has conducted an analysis of ALIGN TECHNOLOGY‘s financials and we are pleased to report that ALIGN TECHNOLOGY is a low-risk investment overall. Our Risk Rating system has determined that there are no major risk factors in their financials. However, there are two risk warnings that have been detected in their income sheet and balance sheet. For more information on these warnings, we recommend registering on goodwhale.com. Our team of analysts can provide additional insight into the warnings and advice on how to mitigate any risks. Ultimately, ALIGN TECHNOLOGY remains a strong investment opportunity if all of the risk warnings can be addressed, and we encourage interested parties to visit goodwhale.com to learn more. More…

Peers

Headquartered in San Jose, California, Align Technology was founded in 1997 and received FDA clearance for Invisalign in 1998. Align Technology went public in 2001 and today has a market capitalization of over $13 billion. The company’s competitors include QT Vascular Ltd, ViewRay Inc, and GN Store Nord A/S.

– QT Vascular Ltd ($SGX:5I0)

Ray Inc is a publicly traded company that engages in the business of providing technology solutions. Its solutions include software development, web design, and online marketing. The company’s primary focus is on small businesses. Ray Inc has a market cap of 704.13M as of 2022 and a Return on Equity of -75.17%. Ray Inc’s market cap is 704.13M, which means it has a market value of 704.13M. Ray Inc’s ROE of -75.17% means that it has a negative net income. This is likely due to the company’s expenses exceeding its revenue.

– ViewRay Inc ($NASDAQ:VRAY)

A.P. Moller – Maersk is an integrated logistics company. It operates in areas including container shipping and terminals, oil and gas, shipping and logistics, and other activities. The company has a market cap of 19.32B as of March 2021 and a return on equity of 13.56%. A.P. Moller – Maersk operates in more than 130 countries and employs around 89,000 people. The company was founded in 1904 and is headquartered in Copenhagen, Denmark.

Summary

Align Technology reported a quarterly earnings drop of $1.82 per diluted share in Q1, down from $2.25, resulting in their stocks dropping 11%. Overall, it is a negative outlook for investors interested in the company. Despite their high revenue growth and increased customer base, the company’s profits were not enough to offset the negative effects of their reduced operating margins and high costs of sales. Going forward, investors should exercise caution when considering ALIGN TECHNOLOGY as an investment opportunity.