Oddity (NASDAQ:ODD) surged in trading on Friday after the consumer technology company announced a stock buyback and raised its guidance for the second quarter. The company’s Board of Directors has approved a stock buyback program worth $150 million of its Class A ordinary shares. This buyback plan will expire on June 30, 2027.
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The company currently has over $250 million in cash and investments, no debt, and $100 million available in an undrawn credit facility. Oddity’s cash deployment strategy focuses on reinvestment, M&A, and stock buybacks.
Oddity Raises its Q2 Outlook
Additionally, Oddity raised its outlook for the second quarter. The company now expects revenues of $189 million, indicating a year-over-year growth of 25%. This guidance is at the high end of the company’s prior forecast of revenues in the range of $185 million to $189 million.
Furthermore, ODD has forecasted an adjusted EBITDA of around $60 million in the second quarter with adjusted diluted earnings of $0.69 per share. This outlook for adjusted EBITDA and EPS exceeds the company’s prior estimates of adjusted EBITDA in the range of $53 million to $56 million and adjusted diluted earnings between $0.61 and $0.64 per share.
Is Oddity Stock a Buy?
Analysts remain bullish about ODD stock, with a Strong Buy consensus rating based on five Buys and one Hold. Over the past year, ODD has declined by more than 10%, and the average ODD price target of $53 implies an upside potential of 25% from current levels.
