Why Oddity Tech Stock Is Plummeting Today
Key Points
Oddity stock is getting crushed after the business reported an unexpected loss in Q1.
Even though sales were better than Wall Street's target, the business still recorded a big sales decline and softer-than-expected margins.
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Oddity Tech (NASDAQ: ODD) stock is getting hit with a big post-earnings sell-off in Tuesday's trading. The beauty industry software analytics company's share price was down 31.1% as of 2:10 p.m. ET.
Oddity reported its first-quarter results before the market opened today, and performance for the period was mixed. In addition to a wider-than-expected loss in the period, management's commentary and forward guidance were not encouraging. The stock is now down 87% over the last year.
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Oddity's Q1 report wasn't encouraging
Oddity reported a non-GAAP (adjusted) loss of $0.17 per share in the first quarter, which was far worse than the average analyst estimate's call for a break-even quarter. While the company's revenue of $197.9 million in the period beat the average analyst estimate by roughly $10 million, sales still fell 26.2% year over year in the quarter.
What's next for Oddity?
For the current quarter, Oddity expects year-over-year sales to be down between 25% and 30%. Meanwhile, the company expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between $8 million and $10 million for the quarter and also guided for positive adjusted EBITDA for the year. Oddity's sales declines aren't moderating to the extent that investors had hoped, and a big margins miss in Q1 and soft forward guidance aren't inspiring confidence.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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