Invisalign's maker says consumers downshifted to lower-priced clear braces
By Claudia Assis
Align Tech's stock drops 9% after quarterly earnings
Shares of Align Technology Inc. fell more than 9% in the extended session Wednesday after the maker of Invisalign and other orthodontic devices saw lower prices for its clear braces and dialed down its expectations for revenue growth this year, saying consumers shifted to cheaper offerings.
Align (ALGN) said that the average selling price of its clear aligners were lower than it expected, thanks in part to "unfavorable" foreign-exchange impact across multiple currencies, especially the Japanese yen, euro, and the Brazilian real.
Discounts and a consumer shift to lower-priced products also took their toll, the company said.
Align earned $96.6 million, or $1.28 a share, in the second quarter, compared with $170.4 million, or $1.46 a share, in the year-ago quarter. Adjusted for one-time items, the company earned $2.41 a share.
Revenue rose 2.6% to $1.03 billion.
Analysts polled by FactSet expected Align to report adjusted EPS of $2.31 a share on sales of $1.04 billion.
Align guided for fiscal 2024 revenue growth up 4% to 6%, due in part to lower prices for its aligners and the continued foreign-exchange hit.
That contrasts with guidance in April for fiscal 2024 revenue growth to be up 6% to 8%.
Align kept its expectations for 2024 capital expenditures at $100 million.
-Claudia Assis
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07-24-24 1708ET
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