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WD-40 Earnings: What To Look For From WDFC

WDFC Cover Image

Household products company WD-40 (NASDAQ: WDFC) will be announcing earnings results this Thursday after market close. Here’s what you need to know.

WD-40 missed analysts’ revenue expectations by 5.4% last quarter, reporting revenues of $146.1 million, up 5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and full-year revenue guidance missing analysts’ expectations.

Is WD-40 a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting WD-40’s revenue to grow 3.6% year on year to $160.6 million, slowing from the 9.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.40 per share.

WD-40 Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. WD-40 has missed Wall Street’s revenue estimates twice over the last two years.

Looking at WD-40’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. McCormick posted flat year-on-year revenue, meeting analysts’ expectations, and General Mills reported a revenue decline of 3.3%, falling short of estimates by 0.5%. McCormick traded up 3.6% following the results while General Mills was down 5.6%.

Read our full analysis of McCormick’s results here and General Mills’s results here.

There has been positive sentiment among investors in the consumer staples segment, with share prices up 2.1% on average over the last month. WD-40 is down 3.6% during the same time and is heading into earnings with an average analyst price target of $296 (compared to the current share price of $234.58).

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