What: After reporting fourth-quarter and full-year financial results that were better than hoped, shares in Align Technology (NASDAQ:ALGN) were up 10.4% at 2:30 pm EST.
So what: Align Technology continues to enjoy sales and profit growth tied to its Invisalign clear dental aligners. In Q4, the company reported that revenue increased 15.9%, to $230.3 million, and that net profit increased 23.6%, to $48.9 million. Adjusted EPS came in at $0.60, or 15.4% ahead of what industry watchers were expecting.
Sales growth was supported by a 26.4% increase in aligner shipments and a 33.4% improvement in its scanner and services segment. Meanwhile, year-over-year profit upside benefited from a slight decline in R&D spending and a pick-up in interest income.
Full-year results were solid, with revenue coming in at $845.5 million, up 11% from $761.6 million in 2014, and EPS staying constant at $1.77.
Now what: Align Technology also offered guidance for the first quarter that includes a 23% increase in aligner shipments, net revenues of $232.5 million to $236.6 million, and EPS of between $0.37 and $0.40. The top-line forecast is a bit better than the $226 million that people came into today anticipating.
Align Technology doesn't have any debt, its top line continues to post double-digit growth, the company is nicely profitable, and demand for less-noticeable aligners remains strong. As a result, this company is entering 2016 with solid tailwinds that could translate into profit-friendly returns.