What happened
Shares of Align Technology (ALGN -0.78%) jumped 27% on Thursday after the orthodontics leader's profits surpassed investors' expectations in its fourth-quarter earnings announcement Wednesday.
So what
After declining for several quarters, Align's revenue inched up 1.3% sequentially to $901.5 million in the fourth quarter. The maker of the Invisalign system saw its clear aligner revenue stabilize at $731.7 million, as volumes increased by 1.1% compared to the third quarter. Meanwhile, the medical device company's imaging systems and services sales grew by 7.8%, to $169.9 million.
"Overall, I'm pleased to report fourth-quarter results that reflect a more stable environment for doctors and their patients than recent quarters," CEO Joe Hogan said in a press release.
All told, Align's adjusted net income checked in at $134.2 million, or $1.73 per share. That exceeded analysts' estimates, which had called for adjusted per-share profits of $1.56.
Now what
Hogan said consumers showed increased interest in orthodontic treatments throughout the fourth quarter. Patient traffic also improved during this time. These positive trends bode well for Align's sales in 2023.
Align's board of directors, in turn, approved a new $1 billion share repurchase program to succeed its current buyback authorization that management expects to complete in the second quarter.
"As we move through 2023, I am cautiously optimistic that we will see continued stability and an improving operating environment, but also recognize that the macroeconomic situation is fragile," Hogan said. "Regardless, we remain confident in our large, untapped market opportunity for digital orthodontics and restorative dentistry."
