SmileDirectClub (NASDAQ:SDC) stock is on the move Friday following the release of the company’s earnings report for the second quarter of 2022.
That report doesn’t start off well for SDC stock, with a diluted earnings per share (EPS) loss of 17 cents. That’s worse than the -14 cents per share that Wall Street had expected. It’s also a wider loss than the -14 cents reported during Q2 2021.
In that same vein, SmileDirectClub’s revenue of $125.8 million missed the analyst estimate of $141.86 million. It also represented a 28% decrease compared to the $174.18 million reported in Q2 2021.
The company also updated its outlook for the full year of 2022 in the earnings report. It now expects revenue to range from $450 million to $500 million. That’s not looking great next to Wall Street’s full-year revenue estimate of $500.31 million.
Why Is SDC Gaining on Earnings Misses?
Despite all of this news, SDC stock is still up on Friday. The stock has been trending on social media and is popular with Reddit traders right now. A squeeze from these investors could be what’s keeping shares from dropping alongside the negative Q2 earnings report.
Today’s heavy trading of SDC stock backs up this idea. As of this writing, more than 5 million shares have changed hands. That’s above the daily average trading volume of about 2.9 million shares.
SDC stock is up 2.5% as of Friday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.