Smile Direct Club Earnings: SDC Stock Down 4% After Q1 Miss

Smile Direct Club (NASDAQ:SDC) earnings for first quarter of 2020 have SDC stock heading higher after-hours Wednesday. That’s despite it reporting diluted losses per share of 28 cents on revenue of $196.65 million. These are both below Wall Street’s estimates of a loss of 19 cents per share and revenue of $219.52 million.

Smile Direct Club Earnings: SDC Stock Up 2% Despite Missing Q1 Estimates

Source: Helen89 /

Here’s what else is worth mentioning from the most recent Smile Direct Club earnings report.

  • SDC doesn’t have per-share data available from the same period of the year prior.
  • Revenue for the quarter is sitting 11% higher than the $177.74 million in the first quarter of 2019.
  • Operating loss of -$96.48 million is 489.4% wider year-over-year than -$16.37 million.
  • The Smile Direct Club earnings report also has net loss coming in at -$107.4 million.
  • That’s 424.4% worse than the company’s net loss of -$20.48 million reported during the same time last year.

Smile Direct Club includes the following statement in its Q1 earnings report:

“SmileDirectClub has entered into a new debt facility with HPS Investment Partners. After refinancing the previous debt facility, the Company will have approximately $420 million in cash on its balance sheet, giving the liquidity needed to continue its growth plans and manage potential downsides with COVID-19.”

Smile Direct Club doesn’t include an outlook in its current report. That makes sense with the economic turmoil the novel coronavirus is causing. Many companies are withholding guidance due to this.

SDC stock was down 4.3% after-hours Wednesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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