Align Technology's Q3 Earnings Edges Out Analysts' Average Expectations

Align Technology Inc ALGN reported Q3 sales of $1.016 billion, up 0.5% sequentially and 38.4% Y/Y, surpassing the consensus estimate of $977.80 million.
Clear Aligner revenues were $837.6 million, down 0.4% sequentially and up 34.9% Y/Y. Clear Aligner volume declined 1.6% sequentially and but up 32.1% Y/Y to 655.1 thousand cases.
Imaging Systems and CAD/CAM Services revenues reached $178.3 million, up 5.0% sequentially and 57.3% Y/Y.
Adjusted EPS of $2.87 came ahead of the consensus of $2.60. Adjusted net income increased 28.5% Y/Y to $$228.6 million.
The gross margin improved from 73.3% to 74.7%, and the operating margin reached 28.8% compared to 28% a year ago.
Align ended Q3 with $1.2 billion in cash and cash equivalents.
Guidance: For FY21, Align expects sales of $3.90 billion - $3.95 billion (consensus of $3.94 billion), up approximately 58% - 60% Y/Y.
It expects the adjusted operating margin to be approximately 3 points higher than the GAAP operating margin for 2021 of 25%.
The Company announced the findings of a clinical study, which validates and further demonstrates the benefits of the iTero Element 5D imaging system to detect and monitor interproximal caries lesions above the gingiva without harmful radiation.
Price Action: ALGN shares closed 8.37% higher at $655.00 on Wednesday.