ALGN reported some strong numbers according to my brief reading and the stock is tanking like crazy.
Makes me wonder if there’s a bad report out there somewhere. I also wonder how many owners might
have been unable to figure out the changes in reporting for income tax. It makes some companies -including
ALGN - look like their earnings went off the cliff while actually they’ve been soaring. I almost used
the term “idiot” in lieu of “owners” but these new tax lines aren’t exactly straight forward either.
If this is the culprit, what a mess. I fix these turkeys … I’ll buy more shares!

Rats, I’m fresh out of cash. I sure hope someone here’s loading up on shares.



Rats, I’m fresh out of cash. I sure hope someone here’s loading up on shares.

Revenue, gross profit, and operating profit up ~~35%. Net income up ~~22%. Reason, they took a big tax hit on their offshore tax loss carry forward. They are guiding similar 35% growth for 2018. The only two reasons I can see for the drop in price is misunderstanding about the 22% net income growth or because people thought the price was too high in any case.

I did add some this morning at $249.92. :wink:

Denny Schlesinger

Align blowout revenues and earnings



I added a little too yesterday expecting solid report, and then added a little more this am.

Here is another article sums it up better than I can.

The company reported a one-time $86.6 million tax expense in the fourth quarter, which translated to $1.06 per diluted share, as a result of the tax reform legislation recently signed into law. Without this negative impact, Align’s net income would have more than doubled compared with the prior-year period. The great news, though, is that the company’s tax burden will decrease in 2018.

Overall, the fourth quarter was a strong finish to another outstanding year for Align, with better than expected revenues, volumes and operating income. Record Q4 revenues were up 43.7% year over year driven by increased Invisalign volumes across all geographies and customer channels, as well as by record iTero scanner revenue. Q4 Invisalign volume was up 34.2% year over year reflecting strong international growth from increased utilization and expansion of our customer base which included over 4,000 new customers for the third consecutive quarter. Q4 operating income was a record $109.6M or 26%.

Guidance looks good too! Projecting 1Q2018 $400-$410 million, 29-32% increase yoy. And projecting EPS to be $0.94 to $0.98 (13% increase at midpoint).



I thought the ALGN earnings report was excellent.

-revenue growth acceleration 5 quarters in a row, up to 43%

  • non gaap earnings was a double over last year
  • clear top dog in their industry
  • continuing to expand world wide
  • seeing an uptick in general dentists using invisalign

I added on the drop this morning at 252. I was shocked it was down after that report. I think we are seeing the algorithm traders kick in when the computers think its a miss because of the tax changes, and then the momentum players pile on.


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Price to Sales at 14-15 times and guiding

Net revenues in the range of $400 million to $410 million, up approximately 29% to 32% over the same period a year ago.

If their guidance proves accurate it will be the first quarterly sequential decline since Q3-15 and by a much larger percentage.


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I read the earnings report, and saw the price action too. Is this AI and robo investing’s finest hour? I had to buy ALGN too. This just warms my heart.


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in the longer term view, do you see significant competitors? Anyone has seen dentist offices switching to another brand than InvisiAlign?



InvisiAlign was the first to enter the “braceless” market. They still appear to be the leader in the field of rearranging teeth with clear removable aligners. Yes, there are competitors but InvisiAlign has become part of the lexicon of those patients seeking invisible braces.


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in the longer term view, do you see significant competitors?

You can’t tell ahead of time if there will be be a disruptor or not. At this point in time I don’t see any.

Denny Schlesinger