Top NASDAQ Performer Align Technology Inc. (ALGN), Stock Soars after Company Reports Q3 Results and Announces Share Repurchase Program
(October 28, 2011) Shares of Align Technology Inc. (NASDAQ: ALGN), a San Jose, California-based company, are seeing a huge rally in trading today. At last check, the Align Technology stock was trading 31.56% higher at $23.43 on above average volume of 1.72 million.
Align Technology shares are soaring in trading today after the company announced its third-quarter financial results and a $150 million share repurchase program. For the third quarter ended September 30, 2011, Align Technology reported revenue of $125.9 million, a record and up from $95.9 million reported for the same period in the previous year.
Align Technology’s gross margin for the third quarter of 2011 was 73.4%, compared with 78.1% reported for the same period in the previous year. The company’s net profit for the third quarter was $19.3 million, or $0.24 per share, compared with a net profit of $16.8 million, or $0.22 per share reported for the same period in the previous year.
Thomas M. Prescott, President and CEO of Align Technology, said that the company’s better than expected results for the third quarter were driven by increased Invisalign case volume from North American Orthodontists and International doctors, as well as higher earnings that benefited from lower than projected operating expenses.
Align Technology also announced that its Board of Directors authorized a $150 million stock repurchase program, effective immediately. Ken Arola, CFO of Align Technology, said that the company’s strong balance sheet and healthy cash flow enabled it to return excess cash to its shareholders through a repurchase program while continuing to invest in its strategic growth initiatives.
About Align Technology Inc.: Align Technology Inc. is a designer, manufacturer and marketer of the Invisalign system.
- The Align Technology stock has a 52-week range of $14.25-$25.94.
- The stock trades on a daily average volume of 608,593.
- The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish signal.
- The stock’s MACD has crossed the signal line on the upside and is also above the zero-line, which are strong bullish signals.
Align Technology announced strong third-quarter financial results. The company’s Board also authorized a share repurchase program. The company’s shares are soaring following the announcements.