WD-40 (NASDAQ:WDFC – Get Free Report) posted its earnings results on Wednesday. The specialty chemicals company reported $1.06 EPS for the quarter, missing the consensus estimate of $1.13 by ($0.07), Zacks reports. WD-40 had a net margin of 11.97% and a return on equity of 30.91%. The business had revenue of $176.78 million during the quarter, compared to analyst estimates of $172.07 million. During the same quarter in the prior year, the business earned $1.56 earnings per share. The firm’s revenue was up 8.1% compared to the same quarter last year.
Here are the key takeaways from WD-40’s conference call:
- Fiscal 2026 sales grew strongly, with reported net sales up 11% to $688 million and constant-currency maintenance product sales up 9%, at the top of the company’s long-term target range.
- Growth initiatives continued to gain traction, including WD-40 Specialist sales up 21%, pure-play e-commerce sales up 19%, and planned direct-market expansion in Japan, which management expects to build over a five- to 10-year period.
- Fourth-quarter gross margin fell to 52.8% as specialty chemical, raw-material, and freight costs increased; fiscal 2027 guidance of 54%-55.5% remains below the company’s long-term 55% target, although management expects gradual recovery.
- Management issued fiscal 2027 guidance for 4%-7% constant-currency sales growth, 5%-10% operating-income growth, and diluted EPS of $6.40-$6.70, while maintaining a commitment to dividends and authorizing up to $100 million in share repurchases.
WD-40 Price Performance
WDFC traded up $0.52 during midday trading on Friday, reaching $210.70. 16,831 shares of the company’s stock were exchanged, compared to its average volume of 162,906. The company has a quick ratio of 1.95, a current ratio of 2.65 and a debt-to-equity ratio of 0.31. The firm has a market capitalization of $2.83 billion, a price-to-earnings ratio of 32.02 and a beta of 0.27. WD-40 has a one year low of $175.38 and a one year high of $298.90. The business has a 50-day simple moving average of $205.31 and a two-hundred day simple moving average of $216.87.
WD-40 Dividend Announcement
The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Monday, October 19th will be given a $1.02 dividend. This represents a $4.08 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Monday, October 19th. WD-40’s dividend payout ratio is 62.01%.
WD-40 News Roundup
Here are the key news stories impacting WD-40 this week:
- Positive Sentiment: Fiscal 2026 net sales rose 11% to $688.0 million, with fourth-quarter revenue of $176.8 million exceeding the roughly $172.1 million consensus estimate. WD-40 Company Reports Fourth Quarter and Fiscal Year 2026 Financial Results
- Positive Sentiment: Management guided fiscal 2027 EPS to $6.40-$6.70 and revenue to $715 million-$735 million. The revenue range brackets consensus of $725.3 million, while the midpoint of the EPS outlook is slightly above the $6.47 consensus.
- Positive Sentiment: Management expects profitability and margins to recover, supporting investor confidence that the recent earnings pressure may be temporary. The company also accelerated share repurchases, which could provide support for per-share results. WD-40 Could Reward Patient Investors—Here’s Why
- Positive Sentiment: WD-40’s transition of Japan to a direct-market model in fiscal 2026 could improve execution and contribute to longer-term growth.
- Neutral Sentiment: The stock’s recent rally has prompted valuation questions. With a price-to-earnings ratio near 31.8, some investors are assessing whether the shares have moved above reasonable fair value, potentially limiting further upside. Has WD-40 Moved Above Fair Value After Its 8% Rise?
- Negative Sentiment: Fourth-quarter EPS was $1.06, below estimates ranging from $1.11 to $1.13 and down from $1.56 a year earlier. The earnings shortfall reflects profit and margin strain despite solid revenue growth. WD-40 Q4 Earnings Lag Estimates
Analyst Ratings Changes
WDFC has been the subject of a number of research analyst reports. Jefferies Financial Group restated a “hold” rating on shares of WD-40 in a research report on Friday, July 10th. DA Davidson increased their price objective on WD-40 from $270.00 to $305.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Zacks Research cut shares of WD-40 from a “strong-buy” rating to a “hold” rating in a report on Friday, September 11th. Finally, Weiss Ratings downgraded shares of WD-40 from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, September 18th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, WD-40 currently has a consensus rating of “Moderate Buy” and an average target price of $305.00.
View Our Latest Report on WD-40
Insider Buying and Selling at WD-40
In related news, insider Patricia Olsem sold 200 shares of WD-40 stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $234.72, for a total transaction of $46,944.00. Following the completion of the transaction, the insider directly owned 4,574 shares of the company’s stock, valued at $1,073,609.28. This trade represents a 4.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 0.78% of the company’s stock.
About WD-40
WD-40 Company develops and markets maintenance, cleaning and homecare products for consumers, professional tradespeople and industrial users. Its best-known product is WD-40 Multi-Use Product, a spray designed to displace moisture, protect metal, loosen rusted parts and lubricate equipment. The company also offers WD-40 Specialist products for specific maintenance applications and the 3-IN-ONE line of lubricants.
The company’s homecare and cleaning portfolio has included brands such as X-14, 2000 Flushes and Carpet Fresh.
Featured Stories
- Five stocks we like better than WD-40
- Tractor Supply’s Q3 Beat Plants the Seeds for a Stock Rebound
- WD-40 Could Reward Patient Investors—Here’s Why
- NextEra and Dominion Have a Deal—Now Comes the Hard Part
- Microsoft’s Earnings Problem: Even Great May Not Be Enough
Receive News & Ratings for WD-40 Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WD-40 and related companies with MarketBeat.com's FREE daily email newsletter.
