SmileDirectClub shares tank as much as 20% after first earnings report since IPO fails to impress

CNBC 0 month ago

Shares of SmileDirectClub tanked by as much as 20% in midday trading Wednesday, following the company's first earnings report since going public in September.

The company, which sells teeth aligners directly to consumers, reported a loss of 89 cents per share on revenue of $180.2 million in revenue after the markets closed Tuesday. Wall Street expected revenue of $165.4 million, according to analysts polled by Refinitiv.

Its guidance for fourth-quarter earnings fell short of analysts' estimates, raising questions about the company's ability to manage investor expectations. Investors also question whether or not it will be able to generate $1.2 billion in revenue next year as expected, given its current growth rate, analysts led by Glen Santangelo at Guggenheim said in a research note to investors Wednesday. 

SmileDirectClub's legal expenses doubled in the quarter from the same time last year, due to pending legislation that could impose harsher regulations on online dentistry companies.

The company made its public debut Sept. 12, and saw its shares plummet 28% in its first day of trading. The poor public debut marked SmileDirectClub as the worst IPO of a "unicorn" company, or start-up valued more than $1 billion.

The company's shares are down approximately 60% off its initial IPO price of $23 per share.


Source link
Read also:
Business Insider › Finance › 2 months ago
Teeth-straightening company SmileDirectClub had one of the worst market debuts for any IPO this year. Nashville, Tennessee-based SmileDirectClub priced shares at $23 last week. Shares were trading hands at $18.40, some 20% below their IPO price, as of...
Business Insider › Finance › 0 month ago
SmileDirectClub reported third-quarter 2019 earnings on Tuesday, its first earnings release as a public company. Shares fell as much as 20% Wednesday after the company's reported deeper losses. The company has struggled to make market gains since its...
Business Insider › 2 months ago
Hindenburg Research on Friday released a report on SmileDirectClub detailing the company's issues and reasons the firm decided to short the stock. The report details financial, regulatory, and competitive reasons that Hindenburg sees SmileDirectClub...
CNBC › 1 month ago
Online dentistry company SmileDirectClub releases its first earnings report as a public company Tuesday after the bell.
Business Insider › 0 month ago
SmileDirectClub reported third-quarter 2019 earnings on Tuesday, its first earnings release as a public company. Shares fell as much as 20% Wednesday after the company reported deeper losses. The company has struggled to make market gains since its...
Business Insider › Finance › 1 month ago
Hindenburg Research tweeted Thursday that SmileDirectClub admitted in a court case filed Wednesday that its stores in California were raided in 2018 by the Dental Board of California. Shares fell as much as 13% on the news. SmileDirectClub filed the...
Business Insider › 2 months ago
SmileDirectClub recently received unanimous "buy" ratings from 10 Wall Street firms. JPMorgan has the highest price target for the shares, at $31. Shares gained as much as 2.92% on the news early Monday before falling as much as 4.28%. The ratings came...
The Sun › 1 month ago
HAVE YOU been dreaming of a straighter smile without forking out a fortune? SmileDirectClub has been creating a buzz on social media as an “affordable alternative” SmileDirectClub – but is the procedure safe? View this post on Instagram Have you...
Business Insider › Finance › 2 months ago
SmileDirectClub recently received unanimous "buy" ratings from 10 Wall Street firms. JPMorgan has the highest price target for the shares, at $31. Shares gained as much as 2.92% on the news early Monday. The ratings came after a shaky public debut in...
Business Insider › Finance › 2 months ago
On Monday, a slew of Wall Street analysts initiated coverage of SmileDirectClub with bullish "buy" ratings and high price targets. Shares gained on the news in early trading Monday, then lost as much as 5.71%. The coverage comes after a rough start to...
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google
OR