The San Jose, Calif.-based company posted profits of approximately $100.9 million, or $1.24 per share, on sales of approximately $505.3 million for the three months ended September 30, seeing profits grow 22.2% while sales grew 31.2% compared with the same period during the previous year.
Earnings per share were ahead of the $1.19 consensus on Wall Street.
“I’m pleased to report third quarter results with revenue and earnings above our outlook driven by higher than expected Invisalign volume — offset somewhat by lower ASPs and foreign exchange. We also had another record quarter for the iTero scanner business with revenues up 79.1% year-over-year. Q3 Invisalign volume increased 5.5% sequentially and up 35.3% year-over-year reflecting strength across regions and customer channels, as well as strong growth from both teen and adult patients. From a product perspective, we saw strength across the Invisalign portfolio with growth from both comprehensive and non-comprehensive products, reflecting an acceleration in the non-comprehensive category related to expansion of our product portfolio, as well as new sales programs and promotions intended to increase adoption and utilization. We also saw continued strength from international regions, especially Asia Pacific, which was our 2nd largest region after the Americas in Q3,” prez & CEO Joe Hogan said in a prepared statement.
For its fourth quarter, Align Technologies said that it expects to post sales of between $505 million and $515 million and diluted earnings per share of between $1.10 and $1.15.
Shares in Align have fallen 21.9% so far today, at $227.15 as of 10:35 a.m. EDT.
The drop comes after the company reported lower than expected average selling prices, according to Leerink partner Richard Newitter. Despite the drop in ASPs, Newitter said that they didn’t see the issue as long-term.
“Most of the ASP impact in 3Q is not structural (some self-inflicted in fact), and we believe ALGN can sustain at least 20-30% top- & bottom-line growth for the foreseeable future as it penetrates an underpenetrated WW $12B+ clear aligner market,” Newitter wrote in a letter to investors.