Align Technology Inc. shares surged 8% Friday, after the maker of Invisalign dental braces blew past second-quarter earnings estimates. San Jose, California-based Align said late Thursday it had net income of $69.2 million, or $85 cents a share, in the quarter, up from $50.1 million, or 62 cents a share, in the year-earlier period. Revenue rose to $356.5 million from $176.9 million. The FactSet consensus was for EPS of 72 cents and revenue of $344 million. North American shipments rose 27.6% while international shipments jumped 37%. The company said Invisalign shipments to the teen market rose 37.6%, after hitting a milestone of 1 million teen patients. The company said it now expects net revenue of $355 million to $360 million in the third quarter, and EPS of 78 cents to 81 cents. The FactSet consensus is for EPS of 81 cents and revenue of $359 million. Leerink analysts welcomed the progress made in the key teen market. "Our recent diligence suggests that orthodontists see Invisalign potentially capable of addressing 60+% of their Teen cases, which would be well-above our 8% estimated penetration into Align's North American teen TAM ("fully loaded" ~3.94M cases) by 2020," they wrote in a note. Align shares have gained 77% in 2017, while the S&P 500 has gained 11%.
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