Align Technology Inc (NASDAQ:ALGN) shares are tumbling in Wednesday’s after-hours session after the company reported worse-than-expected results for the second quarter and issued soft guidance. Here’s a rundown of the report.
- Q2 Revenue: 1.01 billion, versus estimates of $1.06 billion
- Q2 Adjusted EPS: $2.49, versus estimates of $2.57
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Total revenue was down 1.6% on a year-over-year basis. Clear Aligner revenue of $804.6 million was down 3.3% year-over-year, while Imaging Systems and CAD/CAM Services revenue increased 5.6% year-over-year to $207.8 million.
Align ended the second quarter with $901.2 million in total cash and cash equivalents.
“During Q2, we continued to see strong consumer interest in Invisalign treatment, as reflected by iTero scans and Invisalign doctor case submissions. However, we experienced uneven patient case conversion, which led to a lower than typical seasonal uptick in case starts, which historically occurs late in the quarter,” said Joe Hogan, president and CEO of Align.
Align said it repurchased 585,100 shares of its common stock during the quarter at an average price of $164.14 per share.
Outlook: Align expects third-quarter revenue to be between $965 million and $985 million versus estimates of approximately $1.04 billion, according to Benzinga Pro.
“We are evaluating actions to reduce costs and thoughtfully manage our investments while we continue to drive engagement and effectiveness of commercial and marketing programs that leverage our innovation and new product cycle across our clear aligners and scanners,” Hogan added.
ALGN Price Action: Align shares were down 36.78% in after-hours, trading at $128.50 at the time of publication on Wednesday, according to Benzinga Pro.
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