WD-40 | $WDFC Stock | Shares Squeak Lower On Q2 Earnings


WD-40 Company (NASDAQ: WDFC)


WD-40, the multinational corporation best known for the product of the same name-WD-40- the lubricant made famous when it was invented in 1953 but not made available to the general public until 1958 , announced their fiscal Q2 earnings after the market closed on Thursday April 5th, 2018.

Its first use was in the missile and rockets industries to prevent rust and corrosion. Why all the shares do not trade a relatively large amount of volume for a day, investors in particular love the stock for its generous dividend of 1.65% annually. Shares closed the regular session at $133. However,in the aftermarket session shares closed at $130 which was down 2.25%

WDFC Numbers

Sales came in at $101.3 million dollars which was an increase of 5% from the prior fiscal quarter. Earnings came in at $1.05 per share versus $0.87 per share in the same quarter a year ago.

Analysts had been  expecting earnings of 95 cents a share on sales of $102.5 million in the quarter. They also made a revision on their revenue guidance for fiscal 2018, now suggesting likely sales growth between 7% and 9% and sales between $407 million and $415 million. The consensus was to be between $56.6 million and $57.5 million for the year. WD-40 shares ended the regular trading day up 1.5%.

Company Comments

Garry Ridge, WD-40 Company’s president and chief executive officer had this to say to investors:

“Overall we are off to a solid start in fiscal year 2018 with year-to-date net sales growth of 7 percent on a reported basis and 4 percent on a constant currency basis. Unfortunately we are seeing the impact globally of higher commodity prices which have begun to deteriorate our gross margins. Therefore we have decided it is time to make some necessary pricing adjustments to ensure our gross margin will remain above our target of 55 percent over the long-term. As we look to the remainder of fiscal year 2018, we’ve updated our fiscal year guidance to reflect updated foreign currency exchange rates, higher input costs, our revised effective tax rate as well as the changes we are making to our advertising and promotion investment this fiscal year.”

WD-40 Charts

The above price chart shows WDFC on the daily timeframe going back roughly 12 months. Note the recent elevated trendline in green. Shares however will be opening slightly below that area on Friday morning when the markets open as a result of the reaction to earnings.

Company Profile

WD-40 Company engages in the development and sale of maintenance products, and homecare 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; and professional spray maintenance products and lubricants for the bike market 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