Align Technology sets annual high after 3Q report

NEW YORK (AP) — Shares of Align Technology rocketed to an annual high Friday after the dental products maker posted unexpectedly strong results in the third quarter.

Dental products companies have been hit hard by the recession, as many customers were unable to afford procedures or decided to put them off. However Align said business picked up compared with the second quarter. In midday trading, shares of the Santa Clara, Calif., company advanced $2.68, or 17.4 percent, to $18.06

Earlier they rose to $18.85, their highest price in almost two years. About 3 million shares changed hands by noon, far above the stock's average full-day volume of 817,000 shares.

Excluding the costs of a legal settlement, Align's profit of 13 cents per share was far ahead of the 5 cents projected by analysts reporting to Thomson Reuters. The company's $79.3 million in revenue was more than $5 million ahead of estimates.

In a note to clients, SunTrust Robinson Humphrey analyst Jonathan Block said the third quarter is not usually a strong one for Align, but he believes the company was successful in marketing its products.

"The company's new Teen product clearly helped as Invisalign gained more chair time with the orthodontists during the summer months," he said. "It looks like new products, innovative marketing and some stabilization in the economy has allowed the company to turn the corner."

Align said shipments of Invisalign Teen cases grew 32 percent from the previous quarter.

Block kept a "Buy" rating on the stock, lifting his price target to $21 per share from $19. He raised his 2010 profit estimate to 44 cents per share from 35 cents per share. On average, analysts expect 33 cents per share.