Why Align Technology Stock Tanked Today
Shares of Align Technology (NASDAQ: ALGN) were tanking 17% as of 2:36 p.m. ET on Thursday. The big decline came after the maker of Invisalign orthodontic aligners announced its first-quarter results following the market close on Wednesday.
Align reported first-quarter revenue of $973.2 million, up 8.8% year over year. The company posted adjusted earnings of $168.7 million, or $2.13 per share. In the prior-year period, Align recorded adjusted earnings of $198.4 million, or $2.49 per share. Both top- and bottom-line results were below consensus estimates.
CEO Joe Hogan acknowledged that "the first quarter proved to be a tougher than expected operating environment globally." He pointed to three primary factors that were headwinds: COVID-19, waning consumer confidence, and the repercussions of Russia's invasion of Ukraine. In addition, a stronger dollar hurt Align with around half of its revenue generated outside of the U.S.
Source Fool.com
