WD-40 Company | $WDFC Stock | Shares Squeak Lower After Earnings Announcement

WD-40 cannister

WD-40 Company (WDFC:Nasdaq)


WD-40, the household favorite when it comes to loosening moving parts that have become stuck for various reasons.

Used as a lubricant to aid flow in everything from doors, drawers, hinges, and many various other moving parts, the company reported their third-quarter earnings after the market closed on Tuesday July 10th, 2018.

The company beat analyst estimates, beat on revenue, and yet sold off after the announcement was made and company statements had been made public.

The stock closed in regular trading session at $153.05 which was up $1.85 on the day. However, in the after-hours session shares dumped 2.03% closing down at $149.95 or down $3.10.

It looks like many short sellers in the stock will be happy when shares open for trading on Wednesday morning as it shows in data that there is 16.46% of the shares outstanding that have been sold short.

The Numbers

Net sales increased 9% compared to the prior year coming in at $107 million. Net income came in at 16.1 million dollars which was also a sizable increase of 12% compared with a year ago quarter.

Earnings per share came in at $1.15 which compare to $1.02 for last year’s quarter.

However, what irked investors and traders was that included in the report it was stated that the company was cutting their fiscal year 2018 EPS and Sales outlooks.

Company Comments

Garry Ridge, WD-40 Company’s president and chief executive officer had this to say after the earnings were announced:

“We had a solid quarter and are pleased that we achieved both sales and earnings results which reflect new record highs for the Company. Our maintenance products delivered solid sales increases in the third quarter including 10 percent growth of WD-40 Multi-Use Product and 16 percent growth of WD-40 Specialist.  Though fluctuating foreign currency exchange rates favorably impacted our sales results in the current quarter, we still saw a currency adjusted sales growth rate of 5 percent period-over-period.

“Unfortunately we are continuing to see the impact of higher commodity prices which have begun to deteriorate our gross margins in all three of our operating segments.  To combat this margin pressure we have made some price increases to ensure our gross margin remains in-line with our 55/30/25 business model.”

Company Profile

WD-40 Company engages in the development and sale of maintenance products, and home care and cleaning products.

It offers multi-purpose maintenance products, including aerosol sprays, non-aerosol trigger sprays, and in liquid-bulk form products under the WD-40 Multi-Use brand name for various consumer uses.

Specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand name; and bicycle maintenance products under the WD-40 Bike brand name comprising wet and dry chain lubricants, chain cleaners and degreasers, and foaming wash products that are designed for avid and recreational cyclists, bike enthusiasts, and mechanics.

The company also provides multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name.

Professional spray maintenance products and lubricants for the bike market are under the GT85 brand name.

In addition, it offers automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol carpet stain removers, and a liquid trigger carpet stain and odor eliminators under the Spot Shot brand name; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand name; heavy-duty hand cleaner products under the Lava brand name; and liquid mildew stain removers and automatic toilet bowl cleaners under the X-14 brand name.

It offers products primarily through mass retail and home center stores, warehouse club stores, grocery stores, hardware stores, automotive parts outlets, sport retailers, independent bike dealers, online retailers, and industrial distributors and suppliers in North, Central, and South America, as well as in Asia, Australia, Europe, the Middle East, and Africa.

The company was founded in 1953 and is headquartered in San Diego, California.-YahooFinance