Medical device company Align Technology, Inc. (NASDAQ: ALGN) has reported stronger-than-expected results for the fourth quarter ended December 31, 2021. The robust results were on the back of strong growth witnessed in net revenues.
Despite the strong results, shares of the company declined 2.6% to close at $492.50 in Wednesday’s extended trading session.
Revenue & Earnings
Aligen Technology reported quarterly net revenues of $1.03 billion, up 23.6% year-over-year. Moreover, the figure surpassed the consensus estimate of $1.02 billion. The strength in net revenue growth can be attributed to the 16.3% and 61.3% year-over-year growth witnessed in Clear Aligner revenues and Imaging Systems and CAD/CAM Services record revenues, respectively.
With earnings of $2.83 per share, the company’s EPS witnessed an increase of 8.4% from the previous year. The figure also topped the consensus estimate of $2.71 per share.
Meanwhile, the company generated net cash from operating activities of $1.2 million. This denotes a rise of 77.1% from the prior year.
The CEO of Aligen Technology, Joe Hogan, said, “Full year net revenues of $4.0 billion and operating margin of 24.7% were both at the high end of our guidance for fiscal 2021. During 2021, we achieved several major installed base milestones including our 12 millionth Invisalign patient, 68 thousandth iTero scanner sold, and 47 thousandth exocad software license sold. Together, they are the foundation of the Align digital platform, our proprietary cloud-based technology infrastructure and services that integrates the digital treatment process into a seamless and convenient experience for doctors, labs, and patients.”
Recently, Piper Sandler analyst Jason Bednar reiterated a Buy rating on the stock with a price target of $740, which implies upside potential of 46.4% from current levels.
Consensus among analysts is a Strong Buy based on 5 unanimous Buys. The average Aligen Technology price target of $671 implies upside potential of 32.7% from current levels. Shares have declined 7.4% over the past year.
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