Home  »  Market Insights   »  SmileDirectClub, Inc. (SDC) Stock on a Sharp Decli...

SmileDirectClub, Inc. (SDC) Stock on a Sharp Decline, Here’s the Reason

SmileDirectClub, Inc. (SDC), an oral care company, has plunged 23.43% n aftermarket trading session and consequently was trading at $4.02 at the time of the writing. The decline could be attributed to the company’s announcement of quarterly results. On Monday, SDC closed the day at $5.25.

Top 5 Tech Stocks Every Investor Should Buy Right Now

While finding excellent stocks with the potential for gains isn't always easy, we've found a few that could pay out well. In fact, within our report, "Top 5 Tech Stocks Every Investor Should Buy Right Now", we have identified five tech stocks we believe could appreciate.

Sign up here to get your free report now.


Why SDC Dipping?

In the late hours of Monday, SDC reported the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company had cash of $307.64 million on 30th September. The net revenue generated by the company for the period was $126.79 million against $156.45 million for the same period of 2020. The gross profit for the period was $98.27 million against $118.74 million for the same quarter of 2020. The company suffered a net loss of $89.38 million against $43.48 million for the same period of 2020. The net loss per basic and diluted share for the quarter was $0.23 against $0.11 for the same quarter of 2020.

Executive Commentary

David Katzman, Chief Executive Officer and Chairman of SDC, while commenting on the results said that the company is disappointed with the quarterly results which were mainly driven by the macroeconomic headwinds that ultimately affected its financial stature. Despite that, he said, the company is optimistic that it is well-positioned to capture the global opportunities, hence, bringing improvements in its financial status.

Addition of Water Flossers

On 25th October, SDC announced the addition of two new water flossers to aid the customers in maintaining a healthy smile throughout the day. The innovative new flossers, namely Large Tank and Compact, are effective as compared to string flosses and besides, they also complement the company’s award-winning products. They include the bestselling whitening systems and other oral systems as well which are available at Wal-Mart, Amazon etc.

Future Outlook for SDC

During the last six months, SDC has declined more than 35%. Estimates, however, suggest that the stock is in a position to regain its stature in coming times, as the company expects more and more positive developments during upcoming quarters.

Leave a Comment

Your email address will not be published.

Related Posts