SmileDirectClub Stock Falls As Q2 Earnings Stung By Cyberattack, Pandemic, Fall Short Of Expectations

SmileDirectClub Inc SDC Q2 sales increased 63% Y/Y to $174.18 million but fell below the consensus of $198.45 million.
It posted a narrowed EPS of $(0.14), compared to $(0.25) a year ago, missing the analyst estimate of $(0.10).
The Company reported unique aligner shipments of 90,006 in the quarter, with an average aligner gross sales price of $1,885, compared to $1,817 in Q2 FY20.
SmileDirectClub reported an adjusted EBITDA loss of $22.5 million, higher than a loss of $20.3 million a year ago.
Chief Financial Officer Kyle Wailes added, "The short-term headwinds from residual impacts of the April cyber-attack, the lasting economic effects from COVID on our target demographic, and the slower scaling of some of our new international markets due to COVID prevented us from achieving our anticipated second-quarter results."
SDC continues to expect short-term headwinds associated with macroeconomic factors and impacts related to the cyber-attack.
FY21 Guidance: SmileDirectClub expects sales of $750 million - $800 million vs. the consensus of $833.7 million.
It expects a Gross margin in the mid-70% range through the second half of 2021.
Stephens & Co downgrades SDC stock from Overweight to Equal-Weight and lowers the price target from $17 to $11.
William Blair as well downgrades the stock from Outperform to Market Perform.
JP Morgan lowers the price target from $10 to $6 and downgrades the stock from neutral to underweight.
Price Action: SDC shares plunged 24.18% at $5.08 on Tuesday.

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SmileDirectClub Stock Falls As Q2 Earnings Stung By Cyberattack, Pandemic, Fall Short Of Expectations