SmileDirectClub's Q4 outlook grim despite favorable seasonality - Jefferies

Systems Design Co

09/11/2021 11:28

** Dental products maker's  SDC.O  shares down ~22% at $4.10
premarket
    ** Brokerage Jefferies says SDC's implied Q4 outlook
suggests a ~6% q/q decline in revenue and could prove to be
conservative, as seasonality turns more favorable
    ** Co on Monday forecast FY 2021 rev. of $630-$650 mln,
below avg. analyst est. of $757.2 mln; Q3 rev decreases 18%
yr/yr to $138 mln  urn:newsml:reuters.com:*:nL1N2RZ2OK
    ** Jefferies says the guidance assumes no improvement in
broader macro dynamics evident in Q3 such as inflation,
under-employment and shifting consumer preferences; brokerage
cuts PT to $4.75 from $6
    ** Our monthly web scrape data, which has flagged weakening
trends here for months, continues to suggest a cautious stance -
Jefferies
    ** Up to Monday's close, SDC down ~56% YTD

 (Reporting by Manojna Maddipatla in Bengaluru)
 ((manojna.kalyani@thomsonreuters.com; +91  8061822700;))