leadf
logo-loader
viewAlign Technology

Align Technology share price lower on weak Q4 outlook

financial_350_508058f974bd1.jpg

 

Align Technology's (NASDAQ:ALGN) share price plunged Thursday, a day after forecasting a weaker fourth quarter outlook, and posting lower-than-expected third quarter preliminary earnings.  

Shares tumbled 24.61 per cent falling to $26.69 each on the Nasdaq.

The San Jose, California-based company makes scanners and computer aided manufacturing services used in dentistry, orthodontics and dental records storage.

On a preliminary basis, the company expects earnings to be around $24.3 million or 29 cents per share, up from $19.3 million or 24 cents per share, a year ago. 

Adjusted earnings are slated to be in the ballpark of 28 cents per share. 

Revenue, for the third quarter that ended September 30, is projected to be $136.5 million, versus $125.9 million a year-prior.

FactSet analysts expected net income of 29 cents per share, on revenue of $140.2 million for the quarter.

Align's clear aligner segment is slated to rake in $126.7 million in sales, up from $114.3 million. Clear align shipments were 92,500.

The company's scanner and CAD/CAM unit is anticipated to earn $9.8 million in sales, down from $11.6 million a year earlier. 

Gross margin, a key metric, notched up 10 basis points to 73.5 per cent.

For the fourth quarter, the company sees revenue of around $134.2 to $137.8 million, with a per-share adjusted profit of 21 to 23 cents.

Analysts expected net income of 31 cents per share, on $147.4 million in revenue.

In a separate release, the company also announced it terminated its distribution agreements with Straumann for the iTero scanners in Europe and North America. 

The deal has been in place since 2009 between Straumann and Cadent Inc. Align had bought Cadent in April 2011. 

Align decided to market iTero on limited basis directly in Europe to focus on its existing Invisalign customers, it said.

 

Quick facts: Align Technology

Price: 322.57 USD

NASDAQ:ALGN
Market: NASDAQ
Market Cap: $25.41 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Orthocell 'in exciting regulatory phase' as it looks to drive its...

Orthocell Ltd's (ASX:OCC) Paul Anderson says the company's in an exciting regulatory phase having validated its technologies in the clinic and defining pathways to market through the US FDA process. ''We have some significant milestones ahead of us - we have an application within the FDA at the...

17 hours, 36 minutes ago

2 min read