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An orthodontist uses a process called invisalign to straighten the teeth of a patient.
Sammy Dallal | Getty Images | First digital media | Getty Images
Shares of Align Technology, the company that manufactures Invisalign, plunged Thursday following a terrible warning regarding China and lower than expected results.
Align Technology's CEO, Joe Hogan, said in a statement that Invisalign shipments in the second quarter were below expectations, "mainly due to China's weakness related to a more consumption environment." difficult".
The company shipped 377,100 Invisalign cases in the last quarter. Wall Street should be able to ship 382,900 cases, according to FactSet. Alignment shares lost more than 25% early in the session on Thursday.
"Given the uncertainty in China, our outlook for the third quarter reflects a more cautious view of growth in the Asia-Pacific region," Hogan said. Align expects third-quarter earnings to be between $ 1.09 and $ 1.16. Analysts surveyed by FactSet were expecting a median forecast of $ 1.45 earnings per share.
In addition, Align's results in the second quarter were below expectations. The company posted earnings per share of $ 1.33, well below Refinitiv's estimates of $ 1.51.
Hogan's warning and the company's weaker than expected results come as China and the United States negotiate to end a trade war that has been going on for more than a year. An American delegation is due to visit China next week to continue discussions on this issue.
Hogan will be on CNBC's "Mad Money" Thursday night to give more details on the slowdown in China.
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