WD-40 rallies on raised revenue forecast

WD-40 Co

08/07/2021 13:30

** WD-40  WDFC.O  shares up ~8% at $281 premarket after co
raises full-year revenue outlook
    ** Co expects $475-$490 mln revenue for fiscal year,
reflecting strong sales results in Q3; prior forecast was
$445-$475 mln  urn:newsml:reuters.com:*:nPn3wjFVJa
    ** Q3 sales rose 39% to $136.4 mln, beating consensus by
26%, per Refinitiv data
    ** "We do not expect to see sales growth of this magnitude
over the long-term, however, we believe that the new end users
who have interacted with our products during the pandemic will
become permanent users of our maintenance products" (CEO Garry
Ridge)
    ** WDFC posted Q3 adj EPS of $1.52 vs Street view of $1.15 -
Refinitiv   
    ** Jefferies in research note says raw material and freight
costs will be gross margin headwind through beginning of 2022,
but price hikes should provide partial offset by 2nd qtr
    ** Shares down ~2% YTD through Weds close and off >20% from
their Feb highs

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))