If orthodontics sounds dull, Align Technology (ALGN:NASDAQ) certainly hasn’t been. Following a busy after-hours session overnight, pre-market data points to a stock surge of more than 12% when Wall Street kicks-off trading again later today.

The indications are that the share price will hit $300 for the first time since September last year with a $32.68 rally in store.

WHY THE MARKET GOT EXCITED

The Arizona-based innovative orthodontics technology business told investors to expect a better first quarter 2024 than current forecasts, always a welcome bit of news.

The company behind the Invisalign transparent brace line sees Q1 worldwide revenues to be in the range of $960 million to $980 million, beating analyst’ consensus of $946.8 million.

For the full year 2024 (to 31 Dec), Align anticipates total revenues to increase in the mid-single digits range over 2023. That might not look terribly impressive but after a torrid six months, this is good news.

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Since July 2023, the stock has slumped from $385 to $183 (in Nov), before staging a recovery, which will continue today. Putting that into context, Align stock traded at $725 in September 2021.

WHAT THE COMPANY SAID

‘I am pleased to report fourth quarter results with better-than-expected revenues and earnings, primarily reflecting a sequential increase in clear aligner volume for adults and non-comprehensive cases, growth in Canada and the EMEA (Europe, Middle East, Africa) region, as well as increased revenues from systems and services’, said chief executive Jow Hogan.

For Q4 2023, Align reported EPS (earnings per share) of $2.42, more than 10% above consensus of $2.19. Revenue for the came in at $956.7 million, beating the consensus estimate of $931.4 million.

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