WD-40 (NASDAQ:WDFC) Issues Quarterly Earnings Results, Misses Expectations By $0.07 EPS

WD-40 (NASDAQ:WDFC) announced its earnings results on Wednesday. The specialty chemicals company reported $1.06 EPS for the quarter, missing analysts’ consensus estimates of $1.13 by ($0.07), Zacks reports. The business had revenue of $176.78 million for the quarter, compared to analysts’ expectations of $172.07 million. WD-40 had a net margin of 13.23% and a return on equity of 33.53%. The firm’s quarterly revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the company posted $1.56 earnings per share.

Here are the key takeaways from WD-40’s conference call:

• Fiscal 2026 sales grew strongly, with reported net sales up 11% to $688 million and constant-currency maintenance product sales up 9%, at the top of the company’s long-term target range.
• Growth initiatives continued to gain traction, including WD-40 Specialist sales up 21%, pure-play e-commerce sales up 19%, and planned direct-market expansion in Japan, which management expects to build over a five- to 10-year period.
• Fourth-quarter gross margin fell to 52.8% as specialty chemical, raw-material, and freight costs increased; fiscal 2027 guidance of 54%-55.5% remains below the company’s long-term 55% target, although management expects gradual recovery.
• Management issued fiscal 2027 guidance for 4%-7% constant-currency sales growth, 5%-10% operating-income growth, and diluted EPS of $6.40-$6.70, while maintaining a commitment to dividends and authorizing up to $100 million in share repurchases.

WD-40 Price Performance

WDFC opened at $192.56 on Thursday. The business has a fifty day moving average of $205.71 and a 200 day moving average of $216.84. WD-40 has a 52-week low of $175.38 and a 52-week high of $298.90. The company has a quick ratio of 1.95, a current ratio of 2.65 and a debt-to-equity ratio of 0.31. The stock has a market cap of $2.58 billion, a P/E ratio of 29.26 and a beta of 0.27.

WD-40 Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Monday, October 19th will be paid a dividend of $1.02 per share. The ex-dividend date of this dividend is Monday, October 19th. This represents a $4.08 dividend on an annualized basis and a dividend yield of 2.1%. WD-40’s dividend payout ratio is currently 62.01%.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. DA Davidson upped their price target on WD-40 from $270.00 to $305.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Northcoast Research upgraded shares of WD-40 to a “strong-buy” rating in a research report on Wednesday, June 24th. Zacks Research cut shares of WD-40 from a “strong-buy” rating to a “hold” rating in a research note on Friday, September 11th. Jefferies Financial Group reiterated a “hold” rating on shares of WD-40 in a report on Friday, July 10th. Finally, Weiss Ratings downgraded shares of WD-40 from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, September 18th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $305.00.

Insider Activity at WD-40

In other WD-40 news, insider Patricia Olsem sold 300 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $233.73, for a total value of $70,119.00. Following the transaction, the insider directly owned 4,774 shares in the company, valued at $1,115,827.02. This represents a 5.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.78% of the company’s stock.

About WD-40

WD-40 Company develops and markets maintenance, cleaning and homecare products for consumers, professional tradespeople and industrial users. Its best-known product is WD-40 Multi-Use Product, a spray designed to displace moisture, protect metal, loosen rusted parts and lubricate equipment. The company also offers WD-40 Specialist products for specific maintenance applications and the 3-IN-ONE line of lubricants.

The company’s homecare and cleaning portfolio has included brands such as X-14, 2000 Flushes and Carpet Fresh.