Align Technology Inc. (NASDAQ: ALGN), a maker of discrete aligners for bite correction, released its results for the second quarter of 2022. Sales and earnings declined year on year and sequentially, but stock prices climbed as Wall Street anticipated an even larger drop in financial performance.
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ALGN second-quarter sales were $969 million, a 0.4% decrease from the first quarter of 2022 and a 0.8% decrease from the second quarter of the previous year. Earnings per share declined from $3.04 to $1.44 year on year.
Despite the fall, revenue and profit statistics were greater than Wall Street expected, which boosted the company’s stock once the quarterly results were announced. Furthermore, analysts were pleased that Align Technology’s first six months of sales this year were greater than the first six months of 2021.
The Clear Aligner system of transparent caps, which produced more than $798 million in sales (down 5% year on year), is the primary driver of the company’s growth. The impact of the currency, weaker demand in the Chinese market owing to COVID-19, challenges with supply chains, and other factors are cited by management as reasons for the reductions.
However, Align Technology Inc. (ALGN) is hoping that the popularity of its transparent aligners would prevent sales from falling much more. It should be mentioned that both adults and children are increasingly using the company’s aligners.
Furthermore, the list of biting faults is growing, and the use of more comfortable clear caps is recommended. Align Technology Inc. (ALGN) has been able to boost annual income for more than a decade due to the rising popularity of revolutionary orthodontic treatments.
ALGN’s price has fallen by -2.70% in the last week. A glance at its price performance over the last three months indicates that it is up by 1.74%, but it is down by -45.30% over the last six months and -58.36% since the beginning of the year.