The 10-second takeaway
For the quarter ended Nov. 30 (Q1), WD-40 missed slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share contracted significantly.
Margins dropped across the board.
WD-40 reported revenue of $85 million. The five analysts polled by S&P Capital IQ expected a top line of $86 million. Sales were 5.0% higher than the prior-year quarter's $81 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.42. The five earnings estimates compiled by S&P Capital IQ anticipated $0.54 per share. GAAP EPS of $0.42 for Q1 were 21% lower than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 48.7%, 220 basis points worse than the prior-year quarter. Operating margin was 12.1%, 440 basis points worse than the prior-year quarter. Net margin was 8.0%, 320 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $86 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $359 million. The average EPS estimate is $2.33.
The stock has a five-star rating out of five) at Motley Fool CAPS, with 166 members out of 181 rating the stock outperform, and 15 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give WD-40 a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WD-40 is hold, with an average price target of $41.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.