Align Technology CEO: 'Zoom Effect' is powering sales of Invisalign aligners
Wanting to look good for endless daily Zoom calls in the age of COVID-19 is proving to be powerful fuel for Invisalign maker Align Technology (ALGN), says CEO Hogan.
“We're hearing from doctors and patients, they're staring at themselves in Zoom meetings all day and starting to notice imperfections.. And there's more disposable income to deal with those issues,” Hogan told Yahoo Finance’s The First Trade.
That said, investors are staring at a third quarter from Align that had next to zero imperfections.
Shares of Align Technology exploded 33% to a record high of $443 on Thursday following much better than expected earnings. Adjusted earnings came in at $2.25 a share, dusting Wall Street forecasts for 64 cents. Net sales soared 21% year-over-year to $734 million. Aligner volumes surged 28.7% from a year ago to 496,100 cases amid strong demand around the world.
Align said it saw strength among teens and adults as dentists’ offices reopened from COVID-19 related lockdowns. The company’s sales momentum has continued into October, Hogan said.
Asked if the third quarter results were sustainable, Hogan struck an upbeat tone.
“The story about align is the growth opportunity we have. It's an incredible opportunity. We feel like we're just getting going on this orthodontic digital platform,” Hogan noted.
Something for investors to smile about, for sure.
Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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