SmileDirectClub, Inc. (SDC), an oral care company, has seen an increase of 15.97% in the premarket trading session. As a result, SDC stock is changing hands at $7.77 at the time of this writing. On Friday, SDC stock closed the day at $6.70 after rising a prodigious 11.67%. There seems to be no apparent reason for this continuous increase in SDC stock. One potential reason could be the interest of Reddit traders. For the moment, let us discuss some news related to SDC stock.
SDC aid for Afghan refugees
On the 13th of September, SDC announced to enter into partnership with International Rescue Committee (IRC). IRC is a global humanitarian aid and relief organization. The partnership was meant to provide Afghan refugees in the US with oral hygienic essentials. They included SDCs toothbrushes and toothpastes. The company said that it would provide refugees with a total of 20,000 toothbrushes and toothpaste throughout the next year. The company further announced that through its partnership with IRC, it would provide thousands of products with frequency dependent on the need to replenish. Alex Fenkell, Co-Founder of SmileDirectClub, praised the company on that endeavor. He further commented that the company recognizes donations are is critical in helping refugees transition to a new life.
Q2 2021 financial results
On the 9th of August, SDC reported the financial results for the second quarter of the fiscal year 2021, which ended on 30th June 2021. According to the details, the company had cash and cash assets of $376.64 million at the end of the quarter. The company had total assets of $960.38 million at the end of the quarter. The total liabilities at the end of the quarter stood at $926.30 million. The company generated $174.18 million in terms of total revenue during the quarter. During the equivalent period of 2020, the total revenue was $107.07 million. The gross profit during the quarter was $128.32 million, as compared to $58.29 million during the equivalent period of 2020. The total expenses (general and administrative, marketing and selling) were $180.98 million. During the equivalent period of 2020, total expenses were $103.20 million. The company bore a net loss of $55.25 million, while during the second quarter of 2020; the net loss was $94.66 million. The loss per basic and diluted share during the quarter was $0.14. During the equivalent period of 2020, the loss per basic and diluted share was $0.25. SmileDirectClub Chief Financial Officer Kyle Wailes congratulated the company on its outstanding performance. He said that continued expansion in customer acquisition channels would aid the company in profitable growth in the future.
What lies ahead for SDC?
Recent past performance of SDC has been up to the mark. The stock has increased by 30% during the course of the last week alone. Future estimates for SDC are also pointing toward the right direction. The EPS of SDC is expected to increase by 53% during next year, while 34% during the next 5 years. Based on these stats, investors should keep a close eye on SDC stock performance.
