Align Technology (ALGN) was the worst-performing stock in the S&P 500 Thursday, losing more than a third of its value a day after the Invisalign maker reported second-quarter results that missed analysts’ expectations and announced a restructuring.
The Tempe, Ariz.-based company posted adjusted earnings per share of $2.49 on revenue that slipped 1.6% year-over-year to $1.01 billion. Analysts surveyed by Visible Alpha had expected $2.57 and $1.06 billion, respectively.
Align said it plans “to take a series of actions in the second half of fiscal 2025 to streamline operations and reallocate resources to better align with our long-term growth and profitability objectives.” The actions will include layoffs and the firm expects to incur one-time charges of approximately $150 million to $170 million in the second half.
“We are evaluating these difficult but, we believe, necessary actions to position us for sustainable, long-term success and improved profitability,” Align CFO John Morici said.
Align shares plummeted nearly 37% to close at $129, their lowest level in more than eight years.
This article has been updated since it was first published to reflect more recent share price values.