SDC - Why SmileDirectClub Stock Was Plummeting Today
2023-08-09 16:40:16 ET
Shares of SmileDirectClub (NASDAQ: SDC) were plunging today, down 19.7% as of 3:15 p.m. ET, following the release of the company's second-quarter earnings report last night.
While there were actually some mild positives within the company's profit trajectory and guidance, SmileDirect missed both revenue and profit estimates. Perhaps more dire, the company is quickly running out of cash and has a heavy debt burden. While management is hopeful to get to cash-flow positivity by the fourth quarter, investors appear skeptical it will be able to pull it off.
In the second quarter, SmileDirect reported revenue of $101.8 million, down 19.1% year over year, and a loss per share of $0.13, both of which missed analyst estimates.
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Why SmileDirectClub Stock Was Plummeting Today