WD-40 Co. (WDFC) Tops Q3 EPS by 8c, Revenues Beat; Offers FY19 Revenue Guidance Above Consensus

July 9, 2019 4:09 PM EDT

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WD-40 Co. (NASDAQ: WDFC) reported Q3 EPS of $1.30, $0.08 better than the analyst estimate of $1.22. Revenue for the quarter came in at $114 million versus the consensus estimate of $109 million.

"We had a solid quarter with consolidated net sales up 7 percent from last year and in-line with our targeted compound annual growth rate," said Garry Ridge, WD-40 Company\'s chief executive officer. "The Americas segment came in under our targeted growth rate for the segment because they had a particularly strong comparable period last year. This is because in the third quarter of last year many of our customers in the Americas were buying high volumes of product in advance of our planned price increases in the region."

"Overall, we are pleased with the solid progress we have made for the year and remain confident that our strategic initiatives are well positioned to carry us into the future. While we continue to see fluctuations in certain markets from time to time, our long-term growth plans remain stable and we expect we will continue to deliver on our expectations," concluded Ridge.


WD-40 Co. sees FY2019 EPS of $4.58-$4.65. WD-40 Co. sees FY2019 revenue of $425-437 million, versus the consensus of $423.29 million.

  • Net sales growth is projected to be between 4 and 7 percent with net sales expected to be between $425 million and $437 million.
  • Gross margin percentage for the full year is expected to be near 55 percent.
  • Advertising and promotion investments are projected to be between 5.5 and 6.0 percent of net sales.
  • The provision for income tax is expected to be between 19 and 20 percent.
  • Net income is projected to be between $63.3 million and $64.4 million.
  • Diluted earnings per share is expected to be between $4.58 and $4.65 based on an estimated 13.8 million weighted average shares outstanding.

This guidance does not include any future acquisitions or divestitures.

"We expect net sales may come in at the lower end of the range we've shared with investors due to the impacts of fluctuating foreign currency exchange rates," said Jay Rembolt, WD-40 Company's vice president and chief financial officer. "However, we have adjusted the provision for income tax to be between 19 and 20 percent due to favorable impacts from the US Tax Cuts and Jobs Act. This adjustment enabled us to strengthen our net income and EPS guidance for the full fiscal year."

For earnings history and earnings-related data on WD-40 Co. (WDFC) click here.

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