Today, shares of medical equipment supply company Align Tech (ALGN 138.77, +18.68 +15.56%) trade to all-time highs following the Q1 report which saw the top line beat, with a tax benefit on the bottom line. Additionally, shares may be enjoying strong gains partially due to better than expected Q2 revenue guidance.
For those who may not be familiar with the name, ALGN designs and manufactures the Invisalign system and iTero intraoral scanners and services. ALGN’s products help dental professionals achieve the clinical results they expect and deliver effective, cutting-edge dental options to their patients.
Getting back to the results, ALGN reported Q1 earnings of $0.59 excluding a $0.26 tax benefit from stock-based compensation. The company beat market expectations on the top line with revenue growth of 30% to about $310.3 million.
Aiding the strong quarter, ALGN’s Invisalign Case Shipments were up 9.5% sequentially and 27.1% year-over-year to a record 208,000 cases. Strength occurred both domestically and in other markets as North American Invisalign Case Shipments were up 20% compared to last year to about 132,000 with International Invisalign Cases Shipped up about 41% to about 75,000.
Breaking it down even further, ALGN’s Clear Aligner revenues (which are comprised of Invisalign clear aligners and SmileDirectClub aligners) reported revenue growth of 28.5% year-over-year to about $282.4 million. The smaller Scanner and Services segment reported revenue growth of 46.9% versus last year to about $27.9 million.
The stock is also being helped by the strong guidance. Q2 revenue growth is expected between 26-28% in a range of about $340-345 million. Earnings for Q2 are slated to come in at $0.68-0.71, excluding a $0.03 per share excess tax benefit.