WD-40 Whiffs on Earnings

WD-40 (Nasdaq: WDFC  ) reported earnings on Jan. 9. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor Sentiment
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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