Why Align Technology Dropped As Much As 13.7% This Week
Shares of Align Technology (NASDAQ: ALGN) dropped by as much as 13.7% this week, according to data from S&P Global Market Intelligence. The maker of the Invisalign teeth-straightener product posted a revenue decline and disappointing earnings for the third quarter, leading investors to sell the stock. As of 3:14 PM EST on Friday, Oct. 28, the stock is down 10.8% this week.
Align Technology reported its financials for the three months ending in September on Oct. 26. Revenue declined 12.4% year over year in the period to $890.3 million, leading to a 59.8% drop in net income to $72.7 million. Earnings per share (EPS) of $1.36 came in significantly below Wall Street analyst expectations of $2.18. These weak numbers are likely why Align's stock is down so much this week, even with the market on pace to put in its fourth straight week of gains.
The company sells teeth-straightening products to consumers, usually through dentists and orthodontist offices and for younger kids. These products are typically very expensive for families to purchase. With inflation raging in many countries around the globe and household budgets getting stretched, it is no surprise to see fewer people paying for teeth-straightening products.
Source Fool.com
