Is Align Tech Dental Aligner Demand Falling Compared To Traditional Braces?

On Wednesday, Align Technology Inc. (NASDAQ:ALGN) reported worse-than-expected second-quarter results and issued soft guidance.

Second quarter sales increased 3.4% sequentially and were down 1.6% year-over-year to $1.01 billion, versus estimates of $1.06 billion. The dental company reported adjusted earnings of $2.49 per share versus estimates of $2.57.

Clear Aligner revenue of $804.6 million was down 3.3% year-over-year, while Imaging Systems and CAD/CAM Services revenue increased 5.6% year-over-year to $207.8 million.

Align Technology President and CEO Joe Hogan said, "Our second quarter results were mixed…However, we experienced uneven patient case conversion, which led to a lower than typical seasonal uptick in case starts, which historically occurs late in the quarter."

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The company said quarterly results and customer office activity were partly impacted by U.S. tariff turmoil in and outside the U.S., and less affordable financing options for orthodontic treatment and capital equipment purchases.

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