WD-40 Q3 sales rise marginally, forecasts FY 2025 sales of $600 mln-$620 mln

Overview

• WD-40 fiscal Q3 net sales rise 1% but miss analyst expectations, per LSEG data

• Company's maintenance product sales up 2% due to growth in U.S., Asia-Pacific

• Diluted EPS for fiscal Q3 beats analyst expectations, per LSEG data

• Household products maker raises operating income and EPS guidance for fiscal 2025

Outlook

• WD-40 projects fiscal 2025 net sales between $600 mln and $620 mln

• Company expects fiscal 2025 gross margin between 55% and 56%

• WD-40 anticipates fiscal 2025 EPS between $5.30 and $5.60

Result Drivers

• GROSS MARGIN IMPROVEMENT - Co reports gross margin rose to 56.2%, up from 53.1% last year

• MAINTENANCE PRODUCT SALES - Sales increased 2% driven by growth in U.S. and Asia-Pacific regions

• CURRENCY IMPACT - Unfavorable currency translation impacted net sales by approximately $1.6 million

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "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 Co is $296.00, about 22.4% above its July 9 closing price of $229.73

• The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 42 three months ago

Press Release: ID:nBw5vwC3ca