The 10-second takeaway
For the quarter ended Feb. 28 (Q2), WD-40 met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share grew.
Gross margins increased, operating margins shrank, net margins dropped.
WD-40 booked revenue of $86.7 million. The three analysts polled by S&P Capital IQ expected a top line of $87.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.66. The three earnings estimates compiled by S&P Capital IQ predicted $0.56 per share. GAAP EPS of $0.66 for Q2 were 1.5% higher than the prior-year quarter's $0.65 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 50.9%, 190 basis points better than the prior-year quarter. Operating margin was 16.6%, 50 basis points worse than the prior-year quarter. Net margin was 12.1%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $88.9 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $356.3 million. The average EPS estimate is $2.39.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 165 members out of 180 rating the stock outperform, and 15 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give WD-40 a green thumbs-up, and four 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 $51.00.
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