Why SmileDirectClub Shares Are Getting Slammed Today

SmileDirectClub Inc SDC is trading significantly lower Tuesday after the company announced worse-than-expected second-quarter financial results.

SmileDirectClub reported a quarterly earnings loss of 14 cents per share, which came in below the estimate for a loss of 10 cents per share. The company reported quarterly revenue of $174.18 million, which came in below the estimate of $198.45 million. 

SmileDirectClub said it expects full-year 2021 revenue to be in a range of $750 million to $800 million.

“We have a singular focus on maximizing our global opportunity and extending our leading telehealth platform for orthodontia through a persistent emphasis on customer experience, improving consumer perception around credibility, driving positive sentiment with our Challenger campaign, and investing in innovation,” said David Katzman, chairman and CEO of SmileDirectClub.

JP Morgan analyst Robbie Marcus downgraded SmileDirectClub from Neutral to Underweight and lowered the price target from $10 to $6.

Stephens & Co. analyst Chris Cooley downgraded SmileDirectClub from Overweight to Equal-Weight and lowered the price target from $17 to $11.

William Blair analyst John Kreger downgraded SmileDirectClub from Outperform to Market Perform.

Price Action: SmileDirectClub is making a new 52-week low in premarket trading today.

At last check Tuesday, the stock was down 16.90% at $5.57.