Align Technology (NASDAQ: ALGN) reported Q4 EPS of $1.73, $0.19 better than the analyst estimate of $1.54. Revenue for the quarter came in at $901.5 million versus the consensus estimate of $892 million.

For 2023, Align provides the following business outlook:

• •We are pleased with our Q4 results and what appears to be a more stable operating environment in North America, EMEA. We are cautiously optimistic for continued stability and improving trends as we move through the year. However, the macroeconomic environment remains fragile and given continued global challenges and uncertainty, we are not providing full year revenue guidance. We would like to see improvements in the operating environment and consumer demand signals, including stability in China before revisiting our approach.
• •At the same time, we are confident in our large, untapped market opportunity for digital orthodontics and restorative dentistry and our ability to make progress toward our strategic initiatives. We intend to focus on the things we can control and influence which includes strategic investments in sales,marketing, technology and innovation.
• •For full year 2023, assuming no additional material disruptions or circumstances beyond our control, we anticipate 2023 GAAP operating margin to be slightly above 16% and expect our 2023 non-GAAP operating margin to be slightly above 20%.
• •With this backdrop, for Q1 2023, we anticipate clear aligner volumes to be down sequentially primarily due to weakness in China from COVID, partially offset by some stability from our Americas and EMEA regions. We anticipate clear aligner ASPs to be up from Q4’22 primarily due to higher pricing and favorable foreign exchange rates. We anticipate iTero scanner and services revenue to be down sequentially as the business follows a more typical capital equipment cycle.
• •Taken in total, we expect Q1’23 revenues to be about flat to Q4’22. We expect our Q1’23 GAAP operating margin to be up approximately 1% point from Q4’22 GAAP operating margin and expect our Q1’23 non-GAAP operating margin to be consistent with Q4’22 non-GAAP operating margin, as we continue to make investments in R&D and go-to-market activities.
• •For 2023, we expect our investments in capital expenditures to exceed $200 million. Capital expenditures primarily relate to building construction and improvements as well as additional manufacturing capacity to support our international expansion.
  

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