Shares of Align Technology, Inc. (ALGN) gained more than 14 percent in Monday's extended trading after the medical devices company earnings for the first quarter and second-quarter guidance were well above analysts' expectations. The company also reported a profit for the first quarter that increased from last year as lower margins were more than offset by strong revenue growth.
"I'm pleased to report a very strong quarter and a great start to the year. Strong Invisalign volume, particularly from North American Orthodontists, drove better than expected revenue, margins and EPS, and we achieved a major milestone -- our first $100 million quarter in North America sales," President and CEO Thomas Prescott said in a statement.
The San Jose, California-based company reported net income of $21.0 million or $0.26 per share for the first quarter, higher than $15.8 million or $0.20 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter grew to $22.1 million or $0.27 per share from $16.9 million or $0.21 per share in the year-ago quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share for the first quarter. Analysts' estimates typically exclude special items.
Total net revenue for the quarter increased 28.8 percent to $135.08 million from $104.86 million in the same quarter last year, and topped ten Wall Street analysts consensus estimate of $128.15 million.
Invisalign teeth aligner sales totaled $123.3 million for the quarter, up 17.6 percent from a year ago.
During the quarter, the company shipped 85,300 Invisalign cases, up from 71,400 cases last year.
Meanwhile, scanner and CAD/CAM services revenue increased 17.8 percent to $11.8 million from last year. The acquisition of Cadent Holdings, Inc. closed on April 29, 2011, therefore year-over-over year comparisons for the quarter do not include scanner and CAD/CAM services.
However, gross margin for the quarter contracted 380 basis points to 74.6 percent from last year.
Looking ahead to the second quarter, the company expects adjusted earnings in a range of $0.26 to $0.28 per share, on anticipated revenues between $140.2 million and $143.7 million.
Street is currently looking for second-quarter earnings of $0.24 per share on quarterly revenues of $135.59 million.
ALGN closed Monday's regular trading session at $27.44, down $0.50 or 1.79% on a volume of 1.41 million shares. However, the stock soared $3.96 or 14.43% in after-hours trading.
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