WD-40 (NASDAQ:WDFC) Posts Earnings Results, Beats Expectations By $0.75 EPS

Key Points

• WD-40 beat earnings expectations for the quarter, reporting $2.33 EPS versus the $1.58 consensus estimate. Revenue also came in above forecasts at $195.12 million.
• The stock fell 2.9% in midday trading after the results, with shares down $7.17 to $239.42. Trading volume was also above average.
• WD-40 declared a quarterly dividend of $1.02 per share, payable July 31 to shareholders of record on July 17. That works out to an annualized dividend of $4.08 and a 1.7% yield.

WD-40 (NASDAQ:WDFC - Get Free Report) announced its earnings results on Thursday. The specialty chemicals company reported $2.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.58 by $0.75, FiscalAI reports. The company had revenue of $195.12 million during the quarter, compared to analyst estimates of $172.79 million. WD-40 had a net margin of 12.57% and a return on equity of 30.23%.

WD-40 Stock Down 2.9%

Shares of WDFC stock traded down $7.17 during midday trading on Thursday, reaching $239.42. 259,856 shares of the stock were exchanged, compared to its average volume of 175,375. WD-40 has a 1 year low of $175.38 and a 1 year high of $253.24. The company's 50 day moving average is $218.43 and its two-hundred day moving average is $218.65. The company has a current ratio of 2.83, a quick ratio of 1.98 and a debt-to-equity ratio of 0.32. The firm has a market cap of $3.22 billion, a PE ratio of 40.72 and a beta of 0.26.

WD-40 Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Friday, July 17th will be given a dividend of $1.02 per share. The ex-dividend date is Friday, July 17th. This represents a $4.08 annualized dividend and a dividend yield of 1.7%. WD-40's payout ratio is currently 69.39%.

Analyst Ratings Changes

A number of research firms have recently weighed in on WDFC. Weiss Ratings lowered WD-40 from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, May 26th. William Blair started coverage on shares of WD-40 in a research note on Monday, April 6th. They issued an "outperform" rating on the stock. DA Davidson lowered their price target on shares of WD-40 from $300.00 to $270.00 and set a "buy" rating for the company in a report on Friday, April 10th. Finally, Northcoast Research raised shares of 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 issued a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $270.00.

Institutional Investors Weigh In On WD-40

Several hedge funds have recently bought and sold shares of the business. Quarry LP lifted its position in WD-40 by 1,462.5% in the 3rd quarter. Quarry LP now owns 125 shares of the specialty chemicals company's stock valued at $25,000 after acquiring an additional 117 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of WD-40 by 207.8% in the second quarter. EverSource Wealth Advisors LLC now owns 157 shares of the specialty chemicals company's stock worth $36,000 after purchasing an additional 106 shares during the last quarter. Brown Brothers Harriman & Co. raised its stake in shares of WD-40 by 400.0% in the third quarter. Brown Brothers Harriman & Co. now owns 215 shares of the specialty chemicals company's stock worth $42,000 after purchasing an additional 172 shares during the last quarter. Parallel Advisors LLC lifted its holdings in shares of WD-40 by 195.4% during the third quarter. Parallel Advisors LLC now owns 257 shares of the specialty chemicals company's stock valued at $51,000 after purchasing an additional 170 shares in the last quarter. Finally, Advisors Asset Management Inc. lifted its holdings in shares of WD-40 by 26.0% during the fourth quarter. Advisors Asset Management Inc. now owns 359 shares of the specialty chemicals company's stock valued at $71,000 after purchasing an additional 74 shares in the last quarter. Institutional investors own 91.52% of the company's stock.

About WD-40

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.

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