The 10-second takeaway
For the quarter ended Feb. 29 (Q2), WD-40 beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins dropped, net margins grew.
WD-40 chalked up revenue of $86.0 million. The five analysts polled by S&P Capital IQ expected to see revenue of $85.1 million on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $79.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.65. The five earnings estimates compiled by S&P Capital IQ anticipated $0.54 per share. GAAP EPS of $0.65 for Q2 were 23% higher than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.0%, 280 basis points worse than the prior-year quarter. Operating margin was 17.1%, 40 basis points worse than the prior-year quarter. Net margin was 12.3%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $92.3 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $357.4 million. The average EPS estimate is $2.34.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 166 members out of 182 rating the stock outperform, and 16 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 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 $40.75.
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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.