Align Technology Misses Earnings Target, Acquires Cubicure

On Thursday, Align Technology stock plunged after a disappointing third quarter and Cubicure acquisition amid a worsening macro environment.

Align Technology (ALGN) shares tumbled -24.88% to $190.56 per share on October 26, their largest percentage decline since July 2019. However, analysts anticipate a slight recovery of 0.28% to $191.10 apiece when the next session opens.

The Invisalign maker reported Q3 revenue of $690.20 million, up 7.80% year-over-year but 3.64% below the $996.50 Wall Street forecast. As a result, the company cut its median full-year 2023 revenue guidance by 3.52% to $3.84 billion from 3.98 billion.

Moreover, Align Technology posted a $121.40 million generally accepted accounting principles (GAAP) net income for $1.58 earnings per share (EPS). In addition, its non-GAAP earnings grew by 31.30% YoY to $164.30 million for $2.14 EPS, 5.73% below $2.27 EPS estimates.

Furthermore, Align Technology CEO Joe Hogan said they expect sales to narrow further in the final quarter. He explained that the dental industry has deteriorated recently, with decreased patient visits and increased appointment cancellations.

According to the September Gaidge report, first-time orthodontic patient appointments were down 8.70% from the same month last year. Similarly, the orthodontic case starts decreased by a record 6.90% year-on-year.

To date, Align Technology has shipped 602.30 million Invisalign cases, in line with expectations.

Cubicure to Bring 3D Printing to Align Technology

Industrial polymer 3D printing company Cubicure has agreed to come under Align Technology for approximately $92.00 million. It uses its patented Hot Lithography technology to manufacture 3D printing equipment.

On the other hand, Align Technology relied on 3D printing systems to produce molds for its Invisalign clear aligner. Hogan emphasized that procuring an entire 3D printing company is a natural step in enhancing their understanding of the technology.

Cubicure positioned itself as a global pioneer in direct 3D printing solutions, making successive technological breakthroughs through massive R&D investments. Bringing its cutting-edge technology in-house will energize Align Technology’s growth strategy and scale its operations exponentially.