January 9, 2013
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of household products-maker WD-40 (NASDAQ: WDFC ) jumped as much as 11% today, after the company reported better-than-expected earnings in its fiscal first quarter.
So what: Diluted earnings per share jumped from $0.42 a year ago to $0.69 and easily cleared estimates of $0.56. Revenue improved steadily, climbing 12% to $95.3 million. Oddly enough, Europe showed the biggest gains in the company's three regions, with a 17% bump in sales. Guidance was also slightly ahead of expectations, as the company projects revenue of $356 million to $370 million and EPS of $2.31 to $2.40 for fiscal 2013.
Now what: Nothing too complicated here. The market clearly rewarded a resounding earnings beat, affirming a solid brand in a sleepy industry. WD-40 recently raised its dividend 7% and is in the process of $50 million share buyback program. This isn't the kind of stock that's going to be giving multibagger returns, but it's hard to argue with a well-respected brand in a stable industry and a management team focused on returning capital shareholders. Keep up with WD-40 by adding the company to your Watchlist here.
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