Shares of Align Technology(NASDAQ: ALGN) were up more than 13% as of Thursday at 2:20 p.m. ET, after the dental device company announced second-quarter earnings. The stock is up more than 85% so far this year.
Align makes Invisalign tooth straighteners, selling them to orthodontists and dentists. The healthcare company also sells its 3D fitting devices and the software that goes with them, to dental professionals. The company announced better-than-expected second-quarter revenue and earnings per share (EPS), driving up the stock's price. Revenue was $1 billion, up 6.3% sequentially and 3.4% year over year, and EPS was $2.20, compared to $1.82 in the same period last year. The key to increased revenue was that clear aligner volume for teens was up 9.7% over the same period last year and the company's imaging systems and computer aided design/computer aided manufacturing services revenue was up 10.5% over the first quarter. Analysts surveyed by FactSet were expecting earnings of $2.03 a share on revenue of $991.3 million.
Align, which at this time last year was still battling significant headwinds from unfavorable foreign currency rates and slowdowns due to COVID-19 in some markets, seems to have turned the corner back toward growth. The company gave guidance as well, saying it expected third-quarter revenue between $990 million and $1.01 billion, up roughly 12% at the midpoint over the same period last year. It also said it expected full-year revenue to be between $3.97 billion and $3.99 billion, compared to $3.73 billion in 2022.
"While the macroeconomic environment still remains uncertain, we have seen improvements in the operating environment and the consumer demand signals that influence our outlook," CFO John Morici said on the company's earnings call.
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