Upcoming AWS Coverage on Masimo

LONDON, UK / ACCESSWIRE / February 6, 2017 / Active Wall St. announces its post-earnings coverage on Align Technology, Inc. (NASDAQ: ALGN). The Company posted its fourth quarter and fiscal 2016 results on January 31, 2017. The maker of the Invisalign tooth-straightening system outperformed top and bottom line expectations. Register with us now for your free membership at:

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One of Align Technology's competitors within the Medical Appliances & Equipment space, Masimo Corp. (NASDAQ: MASI), is estimated to report earnings on February 28, 2017. AWS will be initiating a research report on Masimo following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on ALGN; touching on MASI. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=ALGN

http://www.activewallst.com/registration-3/?symbol=MASI

Earnings Reviewed

For the quarter ended on December 31, 2016, Align Technology reported revenues of $293.20 million, up 27.3% over Q4 2015 revenues of $230.28 million. The Company's reported numbers outperformed analysts' estimates of $293.1 million. For FY16, Align Technology generated revenues of $1.08 billion, a 27.7% increase compared to revenue of $845.49 million. The Company crossed $1 billion in revenue for the first time in its history.

During Q4 2016, Align Technology's overall gross margin was 75.1%, flat sequentially and up 0.1 point on a y-o-y basis. The Company's reported quarter operating margin was 23.3%, up one point sequentially and down two and half point on a y-o-y basis.

For Q4 2016, the Company posted net profit of $47.6 million, or $0.59 per diluted share, compared to net profit of $48.88 million, or $0.60 per diluted share, in Q4 2015. Align Technology's reported EPS was unfavorably impacted by a stronger US dollar, which amounted to approximately $0.08 per diluted share due to net foreign exchange losses related to the revaluation of certain balance sheet accounts. On an adjusted basis, the Company reported earnings of $0.67 per share, meeting Wall Street's expectations of $0.67 per share.

For FY16, Align Technology posted net profit of $189.68 million, or $2.33 per diluted share, up compared to net profit of $144.02 million, or $1.77 per diluted share, in the prior year.

Sales Results

During Q4 2016, Align Technology's revenues from the Clear Aligner segment totaled $251.5 million, up 17.5% on a y-o-y basis. Clear aligner gross margin for the reported quarter was 77.5%, down 0.2 point sequentially and down 0.4 point y-o-y. Revenues from the Company's Scanner and Service soared 156.8% to $41.7 million. Align Technology's Q4 2016 gross margins for the scanner segment was a record 61%, up 3.9 point sequentially and 23.2 point on a y-o-y basis.

Invisalign case shipments in Q4 2016 were 190.1 thousand, an 18.5% increase on a y-o-y basis. For FY16, Invisalign case shipments totaled 708.5 thousand cases and iTero scanner shipments were 3,970 units, an increase of 21.5% and 229.6%, respectively.

During Q4 2016, Align Technology added 3,700 new Invisalign doctors worldwide of which 1,420 were new North American doctors and 2,280 of which were new international doctors; this compared to 2,615 in Q3 2016 and 2,670 total doctors trained in the same quarter last year.

Cash Flow

As of December 31, 2016, Align Technology had $700.0 million in cash, cash equivalents, and marketable securities compared to $678.7 million as of December 31, 2015. The Company repurchased approximately 0.4 million shares of stock for $38.0 million in Q4 2016 under its April 2014 Repurchase Program.

Subsequent to year-end, the Company purchased the remaining shares under this plan for $3.8 million completing the Align Technology's 2014 Repurchase Plan. Align Technology has $300.0 million available for repurchase under its 2016 Repurchase Plan announced on April 28, 2016.

Outlook

For Q1 2017, Align Technology is forecasting Invisalign case shipments in the range of 200 thousand to 203 thousand, up approximately 22% to 24% over the same period a year ago. The Company is projecting net revenues in the range of $295 million to $298 million. For Q1 2017, Align Technology is expecting diluted EPS in the range of $0.64 to $0.67, which includes $0.14 of excess tax benefits.

Stock Performance

Align Technology's share price finished last Friday's trading session at $95.82, marginally advancing 0.73%. A total volume of 1.10 million shares exchanged hands, which was higher than the 3 months' average volume of 1.04 million shares. The stock has advanced 12.45% and 4.47% in the last three months and past six months, respectively. Additionally, the stock soared 42.21% in the last twelve months. The stock is trading at a PE ratio of 40.83.

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SOURCE: Active Wall Street