Quick overview
- WD-40’s stock surged 25% to $294 following a quarterly earnings report that exceeded analyst expectations by over 40%.
- The company reported a net income of $30.2 million, significantly higher than the predicted $21.2 million, and a 44% increase from the same quarter last year.
- Sales reached nearly $200 million, marking a 24% increase year-over-year, with strong growth across all geographical regions.
- WD-40’s earnings per share of $2.24 surpassed the forecast of $1.58, bolstering investor confidence amid market volatility.
Stock indices may be flat on Friday, but lubricant giantWD-40 (WDFC) is up by 25%, hitting $294 on strong earnings that were well above what analysts predicted.
In early morning trading, WD-40 stock soared thanks to its impressive quarterly earnings report that was more than 40% higher than Wall Street expected. Predictions called for $21.2 million in net income for the quarter, but WD-40 impressed with $30.2 million.
One of the most impressive data points from the press release for the quarterly report included a 44% increase in net income from the same quarter last year. It is no wonder WD-40 is one of the biggest gainers on Friday for the U.S. stock market.
WD-40 Enjoys Incredible Quarter
Previously at $241, the WFDC stock shot up on Friday morning after the company’s quarterly earnings report. The stock has been climbing for weeks, moving from $223 to $239 since early in June. The company’s stock momentum was impacted by news of Iran and the United States engaging in attacks once more. However, their earnings call came at the right time, rescuing the stock from a dip and pulling it higher than it has been since January.
WD-40 reported nearly $200 million in sales, and that puts them about 24% higher than they were last year. Their EPS (earnings per share) climbed to $2.24, which is well above the $1.58 that analysts predicted for them.
The company relies primarily on its multi-purpose lubricating spray and related maintenance items. They also run a cleaning division that brought in $5.4 million in sales for the quarter, making up a larger portion this quarter than in previous quarters. That growth prompted the company to hold onto this division that they had previously planned to sell off.
What may be most impressive about the company’s growth is how it rose across all three geographical areas in which they operate. The EIMEA region, which makes up Europe, India, the Middle East, and Africa, grew by 17% and brought in over $66 million in sales. The Americas grew by 29%, adding just over $101 million, and the Asia-Pacific region grew 24% and brought in more than $27 million. WD-40 may have trouble topping this quarter, but they are on excellent footing now, they have grown their cleaning line into a sizable asset, and they are making impressive gains on the stock market during a time of market volatility.
Timothy St. John
Financial Writer – European & US Desks
www.fxleaders.com