The 10-second takeaway
For the quarter ended May 31 (Q3), WD-40 beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Margins expanded across the board.
WD-40 reported revenue of $93.1 million. The two analysts polled by S&P Capital IQ expected to see revenue of $91.0 million on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $87.0 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 $0.66. The three earnings estimates compiled by S&P Capital IQ averaged $0.55 per share. GAAP EPS of $0.66 for Q3 were 16% higher than the prior-year quarter's $0.57 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 51.3%, 180 basis points better than the prior-year quarter. Operating margin was 16.1%, 100 basis points better than the prior-year quarter. Net margin was 11.0%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $86.6 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $356.6 million. The average EPS estimate is $2.45.
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 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 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.
Can your portfolio provide you with enough income to last through retirement? You'll need more than WD-40. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add WD-40 to My Watchlist.