By Senad Karaahmetovic
Shares of Align Technology (NASDAQ:ALGN) fell 19% after the company reported disappointing results.
The adjusted EPS came in at $1.36 on revenue of $890.3 million to miss the consensus of $2.18 on sales of $973 million. Invisalign case shipments came in about 45,000 lower than what analysts were expecting. Revenue from Clear Aligner also missed the consensus by some margin.
"Our third quarter results reflect continued macro-economic uncertainty and weaker consumer confidence, as well as a significant impact from unfavorable foreign exchange rates across all currencies that affect our operations,” said Align Technology President and CEO Joe Hogan.
Goldman Sachs analysts reiterated a Sell rating as the demand outlook looks “less clear” following the Q3 results.
“On our revised 2023 EPS, ALGN is trading at 25x based on an after-market price of $180, and while this is toward the low end of its historical absolute/relative range, demand uncertainty and overhang from the ortho VBP in China could put further pressure on valuation. We remain Sell rated,” the analysts said.