SmileDirectClub falls on downbeat Q4 revenue, 2022 forecast

SmileDirectClub

01/03/2022 11:44

** Dental-product maker's  SDC.O  shares down 6.4% at $2.05
premarket
    ** Late on Monday, SDC said its Q4 revenue fell 31.6% to
$126 mln [https://bit.ly/35l4RHF
]
    ** Co forecast 2022 revenue between $600 mln and $650 mln,
below Street estimates; says lower end assumes continued
worsening of its core consumer base
    ** "The macroeconomic headwinds impacting the spending of
our core demographic and our business have continued from early
in the summer and through the fourth quarter"- CEO
    ** Brokerage J.P. Morgan says it is cautious on the
company's long-term targets given the uncertainty related to the
macro environment and the multiple changes in strategy co has
attempted in recent years
    ** SDC in January announced strategic actions to boost
profitability, including pausing expansion into new
international markets and reducing its workforce, citing
economic pressure from the pandemic  urn:newsml:reuters.com:*:nL4N2U43UI
    ** Stock down 6.8% YTD, up to the last close

 (Reporting by Amruta Khandekar in Bengaluru)
 ((Amruta.Khandekar@thomsonreuters.com;))