WD-40 raises annual sales outlook after quarterly beat

WD-40

Yesterday 21:13

Overview
US maintenance products maker's Q4 sales rose 8% yr/yr, beating analyst expectations
Q4 net income and EPS fell 32% amid higher input and operating costs
Company repurchased $7 mln in shares, approved new $100 mln buyback program

Outlook
WD-40 sees FY27 net sales of $715 mln to $735 mln, up 4%-7% from FY26
Company expects FY27 gross margin of 54.0% to 55.5%
Company expects FY27 diluted EPS of $6.40 to $6.70, up 5%-10%

Result Drivers
HIGHER INPUT COSTS - Co said increased costs for specialty chemicals and other inputs pressured gross margin in Q4
OPERATING EXPENSES - Co attributed higher selling, general and administrative expenses to incentive compensation and increased freight costs
ADVERTISING SPEND - Co said increased advertising and sales promotion expenses supported sales growth and brand building

Company press release: ID:nBw5fhTbJa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$176.80 mln
$172.08 mln (4 Analysts)
Q4 EPS
 
$1.06
 
Q4 Net Income
 
$14.40 mln
 
Q4 Gross Margin
 
52.80%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the household products peer group is "buy"
Wall Street's median 12-month price target for WD-40 Company is $284.76, about 41.4% above its October 20 closing price of $201.41
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 38 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)