On July 30, Align Technology fell 5.54% in pre-market trading, trading at $170.1/share, with turnover of $495,900. The decline was triggered by weak forward guidance issued alongside otherwise solid Q2 results.
The company reported Q2 adjusted EPS of $2.64, up 6% year-over-year and slightly above the consensus estimate of $2.61. Revenue came in at $1.056 billion, also modestly beating expectations of $1.052 billion. However, Q3 revenue guidance of $1.0 billion to $1.02 billion sits at the low end of analyst expectations, while full-year revenue growth guidance of just 3% to 4% signals decelerating momentum in the second half.
Additional headwinds include a pending EU antitrust investigation into the company's Invisalign clear aligner and intraoral scanner market practices, as well as the departure of its Chief Legal Officer. While the company announced three new independent directors following engagement with activist investor Elliott Investment Management and raised its full-year share repurchase target to $400-$500 million, these measures failed to offset the negative sentiment from subdued guidance.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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