SmileDirectClub Stock Plunges As Q3 Earnings Lag Street Forecasts, FY21 Outlook Cut

SmileDirectClub Inc SDC posted Q3 revenue of $137.68 million, a decrease of 18.3% Y/Y, missing the consensus of $181.90 million.
Unique aligner shipments and average aligner gross sales price stood at ~69.9K and ~$1,900, respectively.
“We are disappointed with our third-quarter results driven by the macroeconomic headwinds that are influencing the spending of our core demographic,” CEO David Katzman noted.
With a modest improvement in gross profit margin to 71.4%, the net loss swelled to $(89.4) million, compared to $(43.4) million a year ago.
EPS loss of $(0.23) missed the consensus of $(0.13).
Guidance: For FY21, SmileDirectClub has lowered the projections for revenue to $630 million – $650 million from $750 million – $800 million, versus the consensus of $757.2 million.
For Q4, the company forecasts sales of $120 million -$140 million, sharply below the consensus of $201.8 million. It sees a gross margin of ~70% for Q4.
Price Action: SDC shares are down 22.9% at $4.05 during the premarket session on the last check Tuesday.