WD-40 (NASDAQ:WDFC) Issues Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• Earnings beat: WD‑40 reported Q2 EPS of $1.50, beating estimates by $0.11, and revenue of $161.67M, up 10.7% year‑over‑year and above the $154.90M consensus.
• Despite the beat, diluted EPS fell roughly 31% versus the prior year and net income declined as higher costs and mix/translation effects compressed margins, which management highlighted and led to a mixed market reaction.
• The company declared a quarterly dividend of $1.02 per share (ex‑dividend Apr 17, payable Apr 30), equal to $4.08 annualized for a ~1.8% yield and a payout ratio near 62%.

WD-40 (NASDAQ:WDFC - Get Free Report) announced its quarterly earnings results on Thursday. The specialty chemicals company reported $1.50 EPS for the quarter, beating analysts' consensus estimates of $1.39 by $0.11, FiscalAI reports. The company had revenue of $161.67 million during the quarter, compared to analysts' expectations of $154.90 million. WD-40 had a return on equity of 30.10% and a net margin of 14.42%.WD-40's revenue was up 10.7% compared to the same quarter last year. During the same period in the prior year, the company earned $1.32 EPS.

WD-40 Price Performance

Shares of WDFC opened at $223.02 on Friday. The business's fifty day moving average is $228.68 and its 200 day moving average is $209.44. WD-40 has a 12-month low of $175.38 and a 12-month high of $253.24. The company has a quick ratio of 2.05, a current ratio of 2.97 and a debt-to-equity ratio of 0.32. The stock has a market cap of $3.01 billion, a P/E ratio of 33.95 and a beta of 0.25.

WD-40 Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Friday, April 17th will be issued a dividend of $1.02 per share. The ex-dividend date is Friday, April 17th. This represents a $4.08 annualized dividend and a dividend yield of 1.8%. WD-40's payout ratio is currently 62.10%.

Key WD-40 News

Here are the key news stories impacting WD-40 this week:

• Positive Sentiment: Sales beat and top-line growth — Total net sales rose ~10.7% year-over-year to $161.7M, topping consensus and signaling demand strength across channels. Press Release
• Positive Sentiment: Revenue and margin improvements in parts of the P&L — Gross profit and operating profit rose year-over-year, and the company reported stronger operating cash flow (notable improvement vs. prior year), which supports reinvestment and balance-sheet flexibility. QuiverQuant Summary
• Positive Sentiment: Analyst and insider signals — William Blair has an Outperform rating and several insiders have been net buyers recently, which can be supportive for sentiment. QuiverQuant Summary
• Neutral Sentiment: Full docs and call details available — Management provided an earnings presentation and a full earnings-call transcript that detail channel performance, regional trends and cost drivers for investors who want the specifics. Slide Deck Call Transcript
• Negative Sentiment: EPS and net income declined materially year-over-year — Diluted EPS was $1.50 (a beat of consensus) but down roughly 31% versus the prior year, and net income fell sharply as higher costs and mix/translation effects compressed bottom-line results. QuiverQuant Summary
• Negative Sentiment: Near-term margin pressure and mixed market reaction — Management flagged rising costs on the call, and some outlets noted the stock initially edged lower on the mixed print despite the revenue beat, reflecting investor focus on profit recovery. Investing.com

Insider Activity at WD-40

In related news, Director David Pendarvis purchased 424 shares of the business's stock in a transaction on Thursday, February 5th. The stock was acquired at an average price of $247.15 per share, for a total transaction of $104,791.60. Following the purchase, the director owned 6,898 shares of the company's stock, valued at approximately $1,704,840.70. This trade represents a 6.55% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 0.78% of the stock is currently owned by insiders.

Hedge Funds Weigh In On WD-40

Several large investors have recently bought and sold shares of the stock. Balyasny Asset Management L.P. bought a new stake in WD-40 in the 4th quarter worth about $29,291,000. First Trust Advisors LP lifted its position in shares of WD-40 by 62.5% during the 4th quarter. First Trust Advisors LP now owns 289,954 shares of the specialty chemicals company's stock worth $57,092,000 after buying an additional 111,559 shares in the last quarter. Squarepoint Ops LLC purchased a new position in shares of WD-40 in the 3rd quarter worth approximately $13,817,000. Ameriprise Financial Inc. boosted its stake in shares of WD-40 by 24.4% in the 2nd quarter. Ameriprise Financial Inc. now owns 333,505 shares of the specialty chemicals company's stock worth $76,069,000 after buying an additional 65,423 shares during the last quarter. Finally, Alliancebernstein L.P. grew its holdings in shares of WD-40 by 11.9% in the second quarter. Alliancebernstein L.P. now owns 501,405 shares of the specialty chemicals company's stock valued at $114,365,000 after acquiring an additional 53,225 shares in the last quarter. 91.52% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. William Blair started coverage on WD-40 in a report on Monday. They set an "outperform" rating on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of WD-40 in a research note on Wednesday, January 21st. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, WD-40 presently has a consensus rating of "Moderate Buy" and an average price target of $300.00.

WD-40 Company Profile

WD-40 Company, headquartered in San Diego, California, is best known for its flagship WD-40® Multi-Use Product, a water-displacing spray used for lubrication, rust prevention and cleaning. Since its introduction in 1953 by the Rocket Chemical Company, the WD-40 brand has become a household and industrial staple. Over time, the company has broadened its portfolio to include complementary maintenance and cleaning brands such as 3-IN-ONE® oils, Lava® hand cleaners, Solvol® solvents, Spot Shot® stain removers and X-14® cleaning products.

WD-40 Company distributes its products in more than 176 countries through retail, industrial and automotive channels.