The manufacturer of Invisalign Align has not succeeded in China; CEO says that he is optimistic

Align Technology CEO Joe Hogan on Thursday accused Chinese companies of being behind the shortfall in the second quarter, but he predicted an improvement in production.

The maker of Invisalign has clearly seen better international growth elsewhere – for example, 39% growth in Europe – but the company has largely missed expectations in China, said Hogan in an interview with "Mad Money".

"We were expecting growth of about 70% in China and about 20-30%," Hogan said. "We think it 's essentially a reaction from consumers at the moment, whether we decide to go ahead with the aligners or not. "

Align sent 377,100 Invisalign cases in the quarter, 5,800 fewer than expected, and the company's shares ran a 27% deficit during the trading day on Thursday. Shareholders earned $ 1.33 per share against about $ 1.51. Net earnings for the third quarter ranged from $ 1.09 to $ 1.16. Analysts predicted about $ 1.45 per share for the third quarter.

Cramer noted that Estee Lauder, the cosmetics industry with a strong presence in China, had strong results in the region during the May quarter. Management said it expects a gradual moderation of growth in China, but sales in this region have contributed to its performance.

Hogan has removed worries about competition and expects teen sales to rise in China and North America this summer.

"This demographic group is a little different, we think it's less selective in terms of price, because these kids have to be treated, or the teens have to benefit from these treatments, and the parents want to meet that deadline," he said. Hogan said.

According to FactSet, Align is expected to deliver between 370,000 and 380,000 units in the third quarter. The badyst consensus is 377,000.

"I am always optimistic about the market in general and what is ahead of us in terms of growth."