Ondas (ONDS) shares are slipping this morning as the defense-tech company’s widening EBITDA losses overshadowed its blockbuster Q2 revenue growth.
For its second financial quarter, ONDS posted a whopping 13x year-over-year increase in revenue to nearly $84 million, blowing past the consensus set at $68 million. Still, the company reported a loss of $0.19 per share, which led to an 8% decline in Ondas stock early on Thursday.
ONDS Options Pricing Remains Undeterred
Options pricing suggests the post-earnings dip in ONDS shares may be a buying opportunity for long-term investors willing to look past the near-term noise.
The put-to-call ratio on contracts expiring mid-September sits at 0.09x currently, indicating a very strong bullish skew.
And the upper price on those contracts, according to Barchart, sits at $10.72 at the time of writing, signaling potential for a 17.6% rally over the next four weeks.
Crucially, despite the post-earnings dip, Ondas Holdings remains firmly above its 20-day and 50-day moving averages (MAs), reinforcing that its uptrend remains intact for the near term.
Why Are Options Traders Bullish
Behind the positive options market sentiment is Ondas Holdings’ explosive operational trajectory and aggressive growth outlook.
The autonomous defense and wireless technology provider lifted its full-year guidance for revenue on Aug. 13 to at least $525 million, which represents over 10x growth on a year-over-year basis.
Moreover, ONDS revealed a record project backlog of $613 million as of June 30, expanding to $757 million on a pro forma basis following acquisitions of DZYNE Technologies and Cyberhawk.
All in all, with $175 million in new orders and Q3 sales estimated up to $155 million, options traders are looking past short-term margin friction toward sustained defense and commercial momentum.
How Wall Street Recommends Playing Ondas
Investors could also take heart in the fact that Wall Street analysts remain bullish as ever on ONDS stock for the next 12 months.
According to Barchart, the consensus rating on Ondas remains at “Strong Buy,” with the mean price target set at $18.15, indicating potential for a nearly 100% rally from current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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