Align Technology (NASDAQ: ALGN) reported Q1 EPS of $0.73, $0.27 worse than the analyst estimate of $1.00. Revenue for the quarter came in at $551 million versus the consensus estimate of $580.3 million.

• Q1 total revenues of $551.0 million, compared to $549.0 million in Q1’19
• Q1 GAAP earnings per diluted share (EPS) of $19.21, Q1 non-GAAP EPS of $0.73
• Q1 Invisalign volume of 359.4 thousand cases, compared to 349.2 thousand cases in Q1’19
• Q1 Invisalign cases for teenage patients of 104.0 thousand cases, 29% of total volume, compared to 97.4 thousand cases, up 1 point vs. Q1’19
• Q1 scanner and services revenues of $69.4 million, compared to $79.8 million in Q1’19.

Commenting on Align’s Q1’20 results, Align Technology President and CEO Joe Hogan said, “For Q1’20, total revenues were $551 million, down 15.2% sequentially and unchanged year-over-year, reflecting significantly lower than expected sales of Invisalign clear aligners and iTero scanners due to the COVID-19 pandemic. Revenues from clear aligners were $481.6 million and iTero scanner & services were $69.4 million. Clear aligner shipments were 359.4 thousand cases. Notwithstanding the impact of COVID-19, shipment volumes were up 2.9% year-over-year, reflecting solid growth from non-comprehensive products driven by the Invisalign Go system across all regions, as well as Invisalign Moderate. This was offset by a lower mix of comprehensive products due primarily to the shortfall in China.”

Hogan added the following comments regarding Align’s first quarter results, “Through early March, China was progressing in line with our original guidance and our other regions were performing ahead of our outlook. However, the situation quickly changed in mid-March as most governments in EMEA and North America closed non-essential businesses and initiated stay at home orders. As a result, the vast majority of Invisalign practices shutdown and stopped seeing patients and our business fell off sharply. At the same time, while EMEA, North America, and other parts of APAC fell off in March, we began to see improvements in China as the country started to open up again.”

Business Outlook

Due to the uncertain scope and duration of the pandemic, and uncertain timing of the global recovery and economic normalization, we cannot at this time estimate the future impact on our operations and financial results. Accordingly, we are not providing guidance for the second quarter of fiscal year 2020 and are withdrawing our full year 2020 guidance.

For earnings history and earnings-related data on Align Technology (ALGN) click here.