Shares of the WD-40 Company (WDFC) are down 5% after the manufacturer of household and industrial chemicals and lubricants posted mixed financial results.
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The California-based company reported earnings per share (EPS) of $1.23, which fell short of consensus estimates of $1.34. For what was its fourth quarter, WD-40 announced revenue of $156 million, which was up 11% from a year earlier and ahead of the $149.20 million consensus estimate on Wall Street.
The company also reported that its gross margin improved to 54.1% in Q4 from 51.4% a year ago, driven by favorable sales and lower input costs. Management said they are making progress on divesting their homecare and cleaning product portfolios in the Americas and the United Kingdom.
Looking Ahead at WDFC
In terms of forward guidance, WD-40 said that for Fiscal Year 2025, it expects revenue of $600 million to $630 million, surpassing the $583.4 million projected on Wall Street. The company also forecasts earnings of $5.20 to $5.45 per share, which is ahead of the $5.22 consensus expectation of analysts.
This is not the first time this year that WD-40 has missed some or all of its quarterly targets. The company’s shares fell nearly 10% in April after the company reported Fiscal second-quarter sales that came in lighter than forecast. So far this year, WDFC stock has increased 12%, about half the 23% gain seen in the benchmark S&P 500 index (SPY).
Is WD-40 Stock a Buy?
WD-40 Stock has a consensus rating of Moderate Buy based on one Wall Street analyst. That one rating is a Buy recommendation. There are no Hold or Sell ratings on the stock. The average WDFC price target of $303 implies 14.43% upside potential from current levels.
