ODDITY Tech Ltd. (NASDAQ:ODD) shares are trading higher after the company approved a share buyback and raised its second-quarter guidance.
Buyback: The company’s Board approved a share buyback program, authorizing the repurchase of up to $150 million of the company shares.
ODDITY presently holds over $250 million in cash, cash equivalents, and investments, with zero financial debt and an additional $100 million available through an undrawn credit facility.
The company’s cash deployment strategy prioritizes reinvestment in the business, mergers and acquisitions, and share buybacks.
Outlook: Following the approval of the buyback plan, ODDITY revised its second-quarter FY24 outlook for revenue to ~$189 million (from $185 million-$189 million earlier) vs. an estimate of $187.43 million.
It also updated adjusted EBITDA to ~$60 million (from $53 million-$56 million) and adjusted EPS to ~$0.69 vs. street view of $0.63.
Last month, ODD reported first-quarter adjusted EPS of $0.61, beating the consensus of $0.49 estimate and sales of $211.63 million exceeded the street view of $205.14 million.
Price Action: ODD shares are up 19.7% at $43.99 at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
