Align Technology “crushed” first-quarter expectations amid already lofty expectations, an analyst said Wednesday as ALGN stock soared closer to a breakout.
The Invisalign maker also reiterated its full-year outlook. That “will go some way to addressing investor questions about the sustainability of growth as we start to lap the growth in the second half of the year,” Evercore ISI analyst Elizabeth Anderson said in a report to clients.
Anderson has an outperform rating on ALGN stock.
ALGN Stock Jumps On Strong Quarter
During the first quarter, Align earned $2.49 per share, minus some items, on $894.8 million in sales. Earnings skyrocketed 241% year over year and beat forecasts for $2.02 a share. Sales rose more than 62% to $894.8 million.
Revenue from clear teeth-straighteners increased north of 56% to $753.3 million.
“Demand was broad-based as clear align cases (including for teens) outperformed, along with continued strong scanner results,” Anderson said. “The strong demand environment generated the best gross margins since the first quarter of 2015 despite outperformance of the lower-margin scanner business.”
For the year, Align expects $3.7 billion to $3.9 billion in net sales. The company expects the lion’s share of its sales to occur in the back half of the year. The guidance easily topped the forecast of ALGN stock analysts for $3.49 billion in sales. Analysts also modeled adjusted profit of $9.30 per share.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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