Amcor stock falls after Raymond James reiterates Market Perform rating
SAN DIEGO - WD-40 Company (NASDAQ:WDFC) reported third-quarter earnings that exceeded analyst expectations on Thursday, despite falling short on revenue targets. Shares edged up 0.9% following the results as the company raised its full-year earnings guidance.
The maintenance product manufacturer posted earnings of $1.54 per share for the quarter ended May 31, beating analyst estimates of $1.42. Revenue came in at $156.9 million, slightly below the consensus forecast of $160.6 million but still representing a 1% increase YoY and marking a record high for quarterly sales.
WD-40’s core maintenance products grew 2% in the quarter and are up 6% year-to-date. The company also reported significant progress on gross margin recovery, reaching 56.2% in the third quarter - an improvement of 310 basis points over last year.
"We now expect to exceed our 55% long-term gross margin target for the fiscal year 2025, a full year ahead of schedule," said Steve Brass, president and chief executive officer. "While we remain mindful of external risks, we’re confident in our trajectory and our ability to deliver on the measures that drive long-term value creation for our stockholders."
The company narrowed its full-year revenue guidance to between $600 million and $620 million, below the consensus estimate of $627.1 million. However, WD-40 raised its earnings outlook to between $5.30 and $5.60 per share, compared to the analyst consensus of $5.52.
Sales in the Americas segment increased 4% in the quarter, while the EIMEA segment (Europe, India, Middle East, Africa) saw a 5% decrease. The Asia-Pacific region posted 7% growth, driven by successful promotional programs in China and expanded distribution.
The company’s board also declared a quarterly dividend of $0.94 per share, payable on July 31 to stockholders of record as of July 18.
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