Align Technology Soar 16% As Q3 Results Top Estimate, Guides Q4 Above View

(RTTNews) - Shares of Align Technology, Inc. (ALGN) soared more than 16 percent in Thursday's extended trade after the medical devices company reported results for the third quarter that topped analysts' expectations. The company also issued earnings and revenue guidance for the fourth quarter, above Street view.

The company reported a profit for the quarter compared to a small loss last year, reflecting double-digit revenue growth amid improved Invisalign clear aligner sales and shipments.

"I'm pleased to report another very good quarter for Align with net revenues, gross margin, and EPS higher than our outlook. Further we achieved record levels of net revenues, Invisalign case volume, and North American iTero scanner volume, enabling us to reach the low end of our long term model for operating margin, while generating strong operating cash flow," President and CEO Thomas Prescott said in a statement.

The San Jose, California-based company reported net income of $34.54 million or $0.42 per share for the third quarter, compared to a net loss of $0.34 million or breakeven per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $34.54 million or $0.42 per share, compared to $22.2 million or $0.26 per share in the year-ago quarter, which included goodwill impairment charge of $24.67 million.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.

Total net revenue for the quarter increased 20.5 percent to $164.51 million from $136.50 million in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $158.61 million.

Invisalign clear aligner sales totaled $153.5 million for the quarter, up 21.2 percent from a year ago, with the company shipping 106,900 cases, up 15.5 percent from 92,500 cases last year. Scanner and CAD/CAM services revenue also grew to $11.0 million from last year's $9.8 million.

"The third quarter includes a seasonally slower period in Europe and in North America for our GP dentists, along with the peak of the summer season for teenage orthodontic case starts. We're pleased that patient traffic appears to have remained solid for our North American Orthodontist customers this summer, which resulted in strong sequential and year over year growth for Invisalign volume, especially in the important teenage segment," Prescott added.

Looking ahead to the fourth quarter, the company expects earnings in a range of $0.41 to $0.43 per share, on anticipated revenues between $169.1 million and $173.1 million, with the company expecting to ship between 109.7 to 112.1 thousand cases of Invisalign clear aligner, a 21.2 to 23.9 percent year-over-year growth.

Street is currently looking for fourth-quarter earnings of $0.36 per share on quarterly revenues of $164.28 million.

ALGN closed Thursday's regular trading session at $45.93, up $2.21 or 5.05% on a volume of 4.49 million shares. The stock soared a further $7.37 or 16.05% in after-hours trading.