Shares of Dentsply Sirona (XRAY) are sliding after the company announced better than expected quarterly results but lowered its guidance for 2018. The company also announced a full arch clear aligner solution to compete with Align Technology’s (ALGN) Invisalign. During the American Association of Orthodontists Conference, 3M (MMM) and Henry Schein (HSIC) also presented similar products as competition in the market of clear aligners increases. DENTSPLY RESULTS: Over the weekend, Dentsply Sirona reported first quarter adjusted earnings per share of 45c and revenue of $956.1M, both above consensus of 42c and $940.8M, respectively. The company also said it sees FY18 adjusted EPS between $2.55-$2.65, below consensus of $2.70. “Despite a solid performance in many businesses and regions, overall results for the quarter were disappointing due headwinds in the U.S. Technologies & Equipment business. Our revised guidance reflects our expectations of continued headwinds in that important business and more importantly the steps we are taking to return the company to growth,” the company said. Additionally, Dentsply Sirona announced that on April 25, its board authorized an increase of $500M of common stock to its share repurchase program. This authorization is in addition to the $500M previously authorized by the board on February 14, bringing the total share repurchase authorization up to $1B of common stock. On May 1st, 2018, Dentsply Sirona closed the acquisition of OraMetrix, which offers an advanced, CAD platform developed for dental professionals to deliver consistently predictable orthodontic outcomes. Dentsply Sirona says the acquisition will enable it to provide a comprehensive orthodontic offering that will include a full arch clear aligner solution. LOOMING COMPETITION FOR ALIGN: In a research note to investors, William Blair analyst John Kreger noted that there were a number of new product introductions this weekend at the American Association of Orthodontists Conference that will compete with Align Technology’s Invisalign. These include products from 3M and Henry Schein, as well as Dentsply Sirona’s SureSmile offering, the analyst pointed out. Kreger argued that investors were well aware of looming competition, specifically from 3M, and the capabilities of the products introduced at the show were largely in line with expectations. The analyst continues to expect that clear aligners will take share from wires and brackets. Meanwhile, Stifel analyst Jonathan Block told investors in a research note of his own that the biggest takeaway from the AAO meeting should be the commitment seen to digital treatment plans and moving teeth with clear aligners. While many may be focused on competition at the meeting, the analyst views it as benign relative to expectations. Voicing a similar opinion, Piper Jaffray analyst Matt O’Brien highlighted that the introductions were very much expected and noted he is still skeptical about their impact on Align in the coming quarters. Nonetheless, he sees this issue weighing on Align’s stock for a while until evidence that it is or is not affecting financial results materializes. All three firms have buy-equivalent ratings on Align shares. PRICE ACTION: In afternoon trading, shares of Dentsply Sirona have dropped about 6% to $46.97, while Align’s stock has gained about 3% to $266.14 per share.