People are cutting back on dental and orthodontic visits, and that’s weighing heavily on shares of Align Technology Inc. in Wednesday’s extended session.
The maker of Invisalign orthodontic aligners whiffed with its third-quarter results Wednesday afternoon, delivering revenue of $960 million that was up from the $890 million it recorded a year before but below the $994 million that analysts tracked by FactSet had been expecting.
posted net income of $121 million, or $1.58 a share, up from $73. million, or 93 cents a share, in the year-earlier period. But adjusted earnings per share of $2.14 trailed the FactSet consensus, which was for $2.26.
Shares were plunging more than 20% in after-hours action Wednesday.
“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 Joe Hogan said in a release. “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.”
The company said it expects revenue to drop sequentially in the fourth quarter. Its outlook for the period, which assumes “no circumstances occur that are beyond our control,” is for $920 million to $940 million. The FactSet consensus was for $1.02 billion.
“As we navigate one of the most challenging operating environments in recent history, with increasing macro-economic pressure on doctors and their patients, we have an enormous opportunity to continue driving adoption of digital orthodontics and restorative dentistry, and a responsibility to optimize our investments for the current environment,” Hogan said.