Align Technology cuts revenue growth forecast on weaker demand for teeth aligners
July 24 (Reuters) -Align Technology ALGN.O cut its annual revenue growth forecast on Wednesday and missed Wall Street estimates for second-quarter profit, hurt by weak demand for its clear teeth aligners among younger patients.
Shares of the dental products maker fell 3.85% in extended trading.
Demand for dental products and surgeries has taken a hit as inflation concerns push consumers to curb discretionary spending and prioritize purchase of essential products.
The company is seeing soft demand for its dental products such as clear aligners, the plastic trays used to fix misaligned teeth.
The Tempe, Arizona-based company now expects fiscal 2024 total revenue growth of between 4% and 6%, compared with its previous forecast for a rise of 6% to 8%.
Align expects third-quarter total sales to be between $980 million and $1 billion, below analysts' estimates of $990 million, according to LSEG data.
The company's total revenue rose 3.1% to $1.02 billion in the second quarter ended June 30, missing expectations of $1.03 billion.
On an adjusted basis, Align's per-share earnings of $1.28 came in below estimates of $2.30.
Reporting by Sruthi Narasimha Chari in Bengaluru; Editing by Mohammed Safi Shamsi
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