WD-40 (NASDAQ:WDFC) Releases Earnings Results, Misses Estimates By $0.07 EPS

Key Points

• WD-40 reported quarterly EPS of $1.06, falling $0.07 short of analysts’ $1.13 consensus estimate. The company posted a 13.23% net margin and 33.53% return on equity.
• Shares dropped 4.4% to $192.56 following the results, while the stock’s consensus analyst rating remained “Moderate Buy” with an average price target of $305.
• WD-40 declared a quarterly dividend of $1.02 per share, equivalent to $4.08 annually and a 2.1% yield; the dividend has a 62.01% payout ratio.

WD-40 (NASDAQ:WDFC - Get Free Report) released its quarterly earnings results on Wednesday. The specialty chemicals company reported $1.06 earnings per share for the quarter, missing analysts' consensus estimates of $1.13 by ($0.07), Zacks reports. WD-40 had a net margin of 13.23% and a return on equity of 33.53%.

WD-40 Stock Down 4.4%

WD-40 stock traded down $8.85 during trading hours on Wednesday, hitting $192.56. The company had a trading volume of 285,796 shares, compared to its average volume of 162,485. The firm has a market capitalization of $2.58 billion, a P/E ratio of 29.26 and a beta of 0.27. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.65 and a quick ratio of 1.95. The firm's fifty day moving average is $206.51 and its 200-day moving average is $216.93. WD-40 has a fifty-two week low of $175.38 and a fifty-two week high of $298.90.

WD-40 Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Monday, October 19th will be given a dividend of $1.02 per share. The ex-dividend date of this dividend is Monday, October 19th. This represents a $4.08 dividend on an annualized basis and a yield of 2.1%. WD-40's payout ratio is presently 62.01%.

Analyst Upgrades and Downgrades

WDFC has been the subject of several research analyst reports. Jefferies Financial Group restated a "hold" rating on shares of WD-40 in a research report on Friday, July 10th. DA Davidson lifted their price objective on shares of WD-40 from $270.00 to $305.00 and gave the stock a "buy" rating in a research report on Friday, July 10th. Zacks Research downgraded shares of WD-40 from a "strong-buy" rating to a "hold" rating in a research note on Friday, September 11th. Weiss Ratings lowered WD-40 from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, September 18th. Finally, Northcoast Research raised WD-40 to a "strong-buy" rating in a research report on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $305.00.

Insider Activity

In other WD-40 news, insider Patricia Olsem sold 200 shares of WD-40 stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $234.72, for a total transaction of $46,944.00. Following the completion of the sale, the insider owned 4,574 shares of the company's stock, valued at $1,073,609.28. This trade represents a 4.19% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 0.78% of the stock is owned by company insiders.

About WD-40

WD-40 Company develops and markets maintenance, cleaning and homecare products for consumers, professional tradespeople and industrial users. Its best-known product is WD-40 Multi-Use Product, a spray designed to displace moisture, protect metal, loosen rusted parts and lubricate equipment. The company also offers WD-40 Specialist products for specific maintenance applications and the 3-IN-ONE line of lubricants.

The company's homecare and cleaning portfolio has included brands such as X-14, 2000 Flushes and Carpet Fresh.

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