Following a better-than-expected fourth-quarter report on Tuesday afternoon, shares of this medical device company jumped more than 7% higher in after-hours trading. Now, even though those gains have been shed this morning, I’m still bullish about this company. Today, we’ll take a closer look at these results and what you can do to profit from the positive earnings news…
Align Technology, Inc. (ALGN) is a global medical devices company known for designing and producing Invisalign clear aligners, OrthoCAD digital services and iTero Intraoral scanners, all of which are used by dental professionals.
Yesterday, ALGN reported that Invisalign shipments soared 34.2% year-over-year to 255,000 during the quarter, while scanner and services sales jumped 37% year-over-year to $57.1 million. These strong numbers did wonders for ALGN’s top and bottom lines during the fourth-quarter.
Total fourth-quarter revenues rose 43.7% year-over-year to $421.3 million, a new record for the company. That topped the consensus estimate for $396.17 million by 6.3%. Align Technology also noted that its fourth-quarter earnings were negatively impacted by a $1.06 per share charge due to the new tax reform bill. So earnings per share came in at $0.13, well below estimates for $0.96. Without the charge, earnings per share would have been $1.19, so Wall Street brushed off the earnings miss.
For fiscal year 2017, Align Technology reported record revenues of $1.5 billion, or 36.4% annual sales growth. Earnings were $231.4 million, or $2.83 per share–and these results also reflected the negative impact of the tax reform bill. Overall, company management stated that 2017 was an “outstanding year” for Align Technology.
Looking forward to the first quarter of fiscal year 2018, Align Technology expects revenues between $400 million and $410 million, which translates to 29% to 32% annual sales growth. Earnings per share are forecast to be between $0.94 and $0.98, or 10.6% to 15.3% annual earnings growth. Both ranges are well above the current consensus estimate.
Again, this was a fantastic fourth-quarter and fiscal year report for Align Technology, and yesterday afternoon, Wall Street agreed. ALGN shares bumped nicely higher. However, we both know traders are a fickle lot. This morning, shares of ALGN shed all of yesterday’s gains. But any dip on a company with fundamentals this strong can be perceived as a buying opportunity. If you’re looking to Buy this A-rated stock, I urge you to join my Blue Chip Growth service now.
Blue Chip Growth members know the exclusive Buy Below price I recommend for Align Technology right now. Plus, they have access to many other member-only benefits including Reports, Flash Alerts, Monthly Issues, Weekly Updates and my entire market-beating Buy List.