Why Waldencast stock is soaring today

Waldencast (WALD 0.12%) the stock soars on wednesday. The cosmetics company’s share price rose 15.9% at 11:45 a.m. ET, according to data from S&P Global Market Intelligence. Shares rose as much as 63.4% earlier in the trading day.

Waldencast released its second-quarter results after the market closed yesterday, reporting sales that crushed expectations. Management also indicated that performance should continue to improve in the second half of this year.

Waldencast reports strong momentum in Q2

Waldencast posted sales of $63.3 million in the second quarter — up 28.2% year-over-year. Meanwhile, the average analyst estimate was for sales of $58.3 million for the period. The company’s Q2 net loss also narrowed to $9 million, down from a $23.5 million loss in the year-ago quarter.

Waldencast, which is best known for its Milk Makeup and Obagi Medical brands, is seeing its revenue growth accelerate. After adjusting for the spin-off of its former Obagi Medical China business, comparable revenue rose 25.7% year over year in the second quarter. This was up from comparable annual growth of 21% in Q1. The company’s core brands are gaining market share and there could be a long runway for continued expansion.

What’s next for Waldencast?

For the second half of this year, Waldencast expects its comparable net income growth to exceed the 25.7% growth rate it posted in Q2. The company also said it expects its non-GAAP (adjusted) earnings before interest, taxes, depreciation and amortization (EBITDA) in the second half to exceed the $17.7 million in adjusted EBITDA recorded in the first half. Management continues to expect an adjusted EBITDA margin in the mid-teens for the full-year period.