(Bloomberg) -- Align Technology Inc. said a “tough consumer environment” in China and slower growth among North American teens led the maker of teeth straighteners to miss its forecast for second-quarter Invisalign case shipments and remain “more cautious” on its outlook for the Asia Pacific region this quarter.
Shares of Align sank 23% in extended trading Wednesday, as third-quarter views for revenue and earnings also trailed analyst estimates. If that decline holds through tomorrow's trading, it would the stock's biggest post-earnings decline in at least a decade.
Second-quarter Invisalign volume was about 377,100 cases, trailing the company's forecast of 380,000 to 385,000. Align's third-quarter forecast calls for 370,000 to 380,000, compared with analysts' estimates for about 400,000, according to data compiled by Bloomberg MODL.
“This was not the quarter the bulls were looking for,” Evercore ISI analysts led by Elizabeth Anderson wrote in a note. The current quarter's outlook “is well under investor expectations.”
Read more: Stephens Asks Whether Invisalign Maker's Best Days Are Waning
To contact the reporter on this story: Jeremy R. Cooke in Mount Pleasant, S.C. at jcooke8@bloomberg.net
To contact the editor responsible for this story: Catherine Larkin at clarkin4@bloomberg.net
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