Align Technology cuts annual sales forecast, cites macro-economic pressures

SmileDirectClub

25/10/2023 22:11

Oct 25 (Reuters) - Align Technology  ALGN.O  lowered its
full-year revenue forecast on Wednesday, hurt by weak demand for
its clear teeth aligners, sending its shares down 21% in
extended trading. 
    The dental company now expects revenue in the range of $3.83
billion to $3.85 billion for 2023, compared with its previous
forecast of $3.97 billion to $3.99 billion.
    "Our third quarter results reflect lower than expected
demand and a more difficult macro environment than we
experienced in the first half of 2023," Chief Executive Officer
Joe Hogan said in a statement.
    Hogan corroborated deteriorating trends in the industry,
including decreased patient visits and increased appointment
cancellations, as the sector comes under pressure from slowing
consumer spending in an uncertain economy.
    Those concerns have weighed heavily on shares of companies
such as Dentsply Sirona  XRAY.O , Envista Holdings Corp
 NVST.O , Swiss-based Straumann Holding AG  STMN.S  and Align
over the last month. 
    Align's lead product segment, which sells a series of
custom-made aligners and other consumables used for
straightening teeth, reported revenue of $794.9 million, below
estimates of $821.9 million. 
    Going forward, the company expects overall revenue in both
segments to be down sequentially with the strengthening of the
dollar against key currencies and longer sales cycles for
capital equipment purchases contributing to the decline. 
    Sales for the company's systems and services segment, which
include its intraoral scanners used for diagnosis and
recommendation of treatment plans, came in at $165.3 million,
compared with estimates of $163.66 million. 
    On an adjusted basis, Align earned $2.14 per share for the
three months ended Sept. 30, below analysts' average estimate of
$2.26 per share, according to LSEG data. 

 (Reporting by Pratik Jain in Bengaluru; Editing by Anil
D'Silva)
 ((Pratik.Jain@thomsonreuters.com;))