(Reuters) – Align Technology on Wednesday raised its annual revenue growth forecast after topping Wall Street estimates for first-quarter profit, banking on resilient demand for its clear teeth aligners among teenagers and younger patients.
Shares of the dental products maker rose 4.5% in extended trading.
The maker of teeth aligners now sees its fiscal 2024 total revenue growth to be up 6% to 8% year-over-year, compared with a previously expected rise of mid-single digit over 2023.
Demand for the company’s clear aligners and consumer interest in orthodontic treatment has been improving since the fourth quarter after taking a hit during the pandemic when consumers prioritized spending on more urgent surgeries and essential products.
Align expects second-quarter total sales to be between $1.03 billion and $1.05 billion, meeting analysts’ estimates at mid-point.
The company’s total revenue rose 5.8% to $997.4 million in the January-to-March quarter, beating analysts’ estimate of $974.41 million, of which 83.9% came from sales of its lead product unit.
Align’s lead product segment, which sells a series of custom-made aligners and other consumables used for straightening teeth, under the Invisalign brand, recorded a 2.4% rise in patient volume to 605.1 thousand cases during the reported quarter.
On an adjusted basis, the company earned $2.14 per share, above analysts’ average estimate of $1.97 per share, as per LSEG data.
(Reporting by Sruthi Narasimha Chari and Pratik Jain in Bengaluru; Editing by Shailesh Kuber)
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