(Reuters) -Medical equipment maker Align Technology raised fourth-quarter revenue forecast and beat third-quarter estimates on Wednesday, driven by strong demand for dental products, sending its shares surging more than 15% in extended trading.
The company, which makes Invisalign teeth aligners and other dental products, expects fourth-quarter revenue to be in the range of $1.03 billion to $1.05 billion, compared with its previous forecast of $965 million to $985 million.
It also expects volume growth of its flagship product Clear Aligner to be in mid-single digits for the year, compared with previous expectation of a low-single digit increase.
“Our Q3 results reflect year-over-year growth in Clear Aligner volumes, driven primarily by the EMEA, APAC and Latin America regions, as well as strong sequential growth from the APAC and Latin America regions, driven primarily by the teens and kids’ category,” said Align CEO Joe Hogan.
The Tempe, Arizona-based company reported revenue of $995.70 million for the third quarter, while analysts on average estimated $976.33 million, according to data compiled by LSEG.
On an adjusted basis, it earned $2.61 per share for the three months ended September 30, compared with the estimate of $2.40.
For the third quarter, the company incurred restructuring, impairment and accelerated depreciation charges of $88.3 million.
Align said it currently does not expect a material change to operations as a consequence of the latest U.S. tariff actions.
(Reporting by Bageshri Banerjee; Editing by Shilpi Majumdar)
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