Align Technology's stock plunged 7.03% in after-hours trading on Wednesday, following the company's Q4 2024 earnings release. While the company reported adjusted EPS of $2.44, in line with estimates, and revenue of $995.2 million, beating expectations slightly, its operating income of $144.1 million missed analysts' estimates of $225.3 million.
The earnings report came amid high investor expectations, as reflected in the elevated options trading volume ahead of the release. Implied volatility suggested the market was anticipating a 9.5% move in Align Technology's share price post-earnings, with put options (bets on a price decline) outpacing call options by a ratio of 8:5.
The stock's decline also occurred against a backdrop of broader market volatility, driven by factors such as ongoing U.S.-China trade tensions and speculation of potential interest rate hikes in Japan. These external factors may have exacerbated the negative sentiment surrounding Align Technology's earnings, contributing to the significant after-hours price movement.