AndreyPopov
Shares of Align Technology (NASDAQ:ALGN) on Wednesday cratered nearly 23% in extended trading, after the dental products company delivered a top and bottom line miss, cut its full year revenue guidance and warned of deteriorating market trends.
ALGN stock slumped 22.9% to $195.65 after hours.
Align (ALGN) posted Q3 adjusted earnings per share of $2.14, which missed estimates by 12 cents. Revenue rose 7.9% Y/Y to $960.2M, but came in short of consensus by $34.57M.
Revenue from sales of its clear teeth aligners rose 8.5% Y/Y to $794.9M, but was down almost 5% on a sequential basis. Similarly, clear aligner shipments rose 2.3% Y/Y to about 602K, but fell 3.3% on a sequential basis.
“Our third quarter results reflect lower than expected demand and a more difficult macro environment than we experienced in the first half of 2023,” Align (ALGN) top boss Joe Hogan said in a statement.
“Dental practices and industry research firms have reported deteriorating trends, including decreased patient visits and increased patient appointment cancellations, along with fewer orthodontic case starts overall, especially among adult patients,” Hogan added.
Turning to ALGN’s outlook, the company said it now sees full year 2023 revenue to be $3.83B to $3.85B, compared to a prior forecast of $3.97B to $3.99B. The consensus revenue estimate is $3.97B.
For Q4, Align (ALGN) expects revenue of $920M to $940M, versus a consensus estimate of $1.02B.
Image and article originally from seekingalpha.com. Read the original article here.