WD-40 shares drop 3% as Q4 earnings miss estimates, guidance strong

EditorRachael Rajan
Published 10/17/2024, 04:14 PM
© Reuters.
WDFC
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SAN DIEGO - WD-40 Company (NASDAQ:WDFC) reported fourth quarter revenue that exceeded analyst expectations, while earnings fell short. The company also provided an upbeat outlook for fiscal 2025. WDFC shares were trading 3.13% lower after-hours.

The maintenance and cleaning products maker posted revenue of $156 million for the quarter ended August 31, up 11% YoY and above the $149.2 million consensus estimate. However, adjusted earnings per share came in at $1.23, missing the $1.34 analyst forecast.

For fiscal 2025, WD-40 expects revenue between $600 million and $630 million, surpassing the $583.4 million Wall Street projection. The company sees earnings per share in the range of $5.20 to $5.45, compared to the $5.22 consensus.

"Fiscal year 2024 was exceptionally strong for WD-40 Company," said CEO Steve Brass. "We delivered double-digit revenue growth, with all of our trading blocs performing within or above their target ranges."

Gross margin improved to 54.1% in Q4 from 51.4% a year ago, driven by favorable sales mix, lower input costs, and enhanced operational efficiencies.

The company said it continues to make progress on divesting its Americas and United Kingdom homecare and cleaning product portfolios, expecting to complete the transaction in the first half of fiscal 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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