Key Takeaways
- WD-40 Co. shares jumped Wednesday as the maker of maintenance and household products reported profit and sales that beat estimates.
- Chief Executive Officer (CEO) Steve Brass said WD-40 began the new fiscal year “firing on all cylinders.”
- However, WD-40 didn’t change its full-year guidance, citing concerns about global economic issues.
Shares of WD-40 Co. (WDFC) skyrocketed Wednesday as the maintenance and household products manufacturer posted better-than-expected results on strong demand for its namesake lubricant.
WD-40 reported first-quarter fiscal 2024 earnings per share (EPS) of $1.28, with revenue increasing 12% to $140.4 million for the period ended Nov. 30, 2023. Both exceeded forecasts.
Net sales rose 10% in the Americas to $64.08 million, as sales of WD-40 Multi-Use Product rose 12%. The company noted it benefited from promotional programs. Net sales jumped 20% to $48.75 million in the Europe, India, Middle East, Africa (EIMEA) region, and by 6% to $27.59 million in the Asia-Pacific market.
CEO Steve Brass said the company began the fiscal year “firing on all cylinders, with significant volume-related sales growth across all three trade blocs.”
However, Chief Financial Officer (CFO) Sara Hyzer said WD-40 wouldn’t change its full-year guidance because results can vary from quarter to quarter “based on the timing of promotional activities, market mix, and the impacts from a world which is filled with volatility, uncertainty, complexity, and ambiguity.”
WD-40 shares on Wednesday soared 14.5% in intraday trading, reaching their highest level since April 2021.
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