Align Technology, Inc. ALGN is set to release first-quarter 2025 results on April 30, after the closing bell.

The company posted adjusted earnings per share (EPS) of $2.44 in the last reported quarter, which topped the Zacks Consensus Estimate by 0.4%. Align Technology beat on earnings in each of the trailing four quarters, the average surprise being 3.53%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

ALGN’s Q1 Estimates

The Zacks Consensus Estimate for revenues is pegged at $975.3 million, which suggests a decline of 2.2% from the year-ago reported figure.

The Zacks Consensus Estimate for earnings is pinned at $1.99 per share, indicating a 7% decline from the year-ago recorded actuals.

Estimate Revision Trend Ahead of ALGN’s Q1 Earnings

Estimates for Align Technology’s first-quarter earnings have moved down marginally 0.5% to $1.99 per share in the past 30 days.

Let's take a look at how things might have shaped up for the MedTech major prior to the announcement.

Factors at Play

Clear Aligner Business

Similar to the last reported quarter, Align Technology is likely to have witnessed strength in Clear Aligner volumes for teens and growing kids, reflecting growth across regions, especially from Invisalign First in the APAC and EMEA regions. In the to-be-reported quarter, non-case revenues might have witnessed a year-over-year increase owing to the sustained growth of Vivera retainers and the Doctor Subscription Program. Meanwhile, we expect Clear Aligner volume growth in Latin America and improving trends in North America to have persisted in the to-be-reported quarter. 

In the fourth quarter, Clear Aligner volume from DSO customers increased year over year, reflecting growth across all regions. The DSO business in the United States continued to outpace the retail doctors, driven by the company’s largest DSO partners — SmileDoctors and Heartland Dental. This might have benefited the company’s quarterly top line.

In February 2025, the Invisalign Palatal Expander System was commercially launched in Turkey. Additionally, in the previous quarter, it received a CE mark in Europe under the Medical Device Regulation and has also completed registration with the MHRA for the United Kingdom and overseas territories. These factors, too, might have been favorable for Align Technology’s first-quarter revenues. 

Imaging Systems & CAD/CAM Service Business

In the first quarter, the Systems & Services business is projected to have witnessed growth, owing to high scanner Average Selling Prices (ASPs), increased scanner volumes and non-system revenues driven by iTero Lumina wand upgrades, increased scanner rentals and certified pre-owned (“CPO”) leasing programs. The continuous uptake of the iTero Lumina Scanner with ortho workflow and positive response from customers are likely to have boosted the company’s first-quarter revenues. 

Align Technology, Inc. Price and EPS Surprise

Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote

In March 2025, Align Technology launched its next-generation iTero Lumina solutions with comprehensive capabilities, including Near Infra-Red Imaging (NIRI) technology in the iTero Lumina Pro dental imaging system. In the same month, it launched a new software-based computer-aided detection solution that uses artificial intelligence (AI) to automatically analyze 2D radiographs in the European Union countries and the United Kingdom of Align X-ray Insights. We expect these developments to have positively impacted the company’s first-quarter top line.

What Our Quantitative Model Predicts for ALGN

Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, that is not the case here, as you can see below:

Earnings ESP: Align Technologies has an Earnings ESP of -3.08%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks Worth a Look

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle:

Masimo MASI has an Earnings ESP of +0.64% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is expected to release first-quarter 2025 results soon. 

MASI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.41%. The Zacks Consensus Estimate for first-quarter EPS implies a year-over-year increase of 61%.

Veeva Systems VEEV has an Earnings ESP of +0.17% and a Zacks Rank #1 at present. The company is expected to release first-quarter fiscal 2026 results shortly.

The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.92%. The Zacks Consensus Estimate for first-quarter EPS implies a year-over-year increase of 16%.

Hims & Hers Health HIMS has an Earnings ESP of +115.69% and a Zacks Rank #2 at present. The company is expected to release first-quarter 2025 results soon.

HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 40.42%. The Zacks Consensus Estimate for Hims & Hers Health’s first-quarter EPS suggests a year-over-year improvement of 180%.

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Align Technology, Inc. (ALGN) : Free Stock Analysis Report

Masimo Corporation (MASI) : Free Stock Analysis Report

Veeva Systems Inc. (VEEV) : Free Stock Analysis Report

Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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