Align Technology Inc. (ALGN) shares are flying high in the mid-day trading Thursday on heavy volume after the manufacturer of 3D digital scanners and clear aligners reported its financial results for the third quarter that beat consensus forecast by a wide margin.
The San Jose, California-based company reported adjusted earnings of $2.25 per share for the quarter, well above 64 cents per share forecasted by analysts. Revenue for the quarter jumped to $734 million, up 21 percent from the comparable period last year.
Align Technology attributed the strong performance to high demand for its products during the pandemic. The company said people confined to their homes during the lockdown had more time to use its aligners, as they generally had to be worn for more than 20 hours on daily basis, and in normal situation it becomes difficult for people associated with businesses to do that due to their tough routine.
Speaking to analysts on a conference call, ALGN Chief Executive Officer Joseph Hogan said the new normal has resulted in lesser travelling, fewer international trips, and relatively lower spending on fuel etc. and this has created room for spending on Invisalign treatment, particularly when people are working from their homes.
Align Technology also attributed the success to marketing campaigns targeted towards mothers and teenagers.
Align stock made a new 52-week high of $459 during Thursday trading following the results. The 52-week range of the stock is $127.88-$459.00, while its market cap stands at $35.252. ALGN is currently trading around $450 on volume of just over 4 million.
If we analyze the previous performance of the stock, it has jumped nearly 109 percent over the past year, about 60 percent on year-to-date basis, and approx. 139 percent during the last 6 months. The upward trajectory of the stock over the recent months suggests that it may continue its positive movement in the coming months.