Why WD-40 Shares Are Gaining Today

WD-40 Co WDFC reported a Q3 FY23 revenue increase of 15% Y/Y at $141.7 million, beating the consensus of $138.4 million. 

By segment, net sales in the Americas rose 16% Y/Y, EMEA was up 6% Y/Y, and Asia-Pacific grew 42% Y/Y in the quarter. 

Gross margin expanded to 50.6% from 47.7% in the prior-year quarter.

EPS of $1.38 exceeded the consensus of $1.22 in the quarter. 

Dividend: In June, the board of directors declared a quarterly dividend per share of $0.83, payable on July 31, 2023, to shareholders of record as on July 14, 2023.

Repurchase: In Q3, WDFC repurchased shares worth $1.8 million in the quarter.

Last month, the board approved a new share repurchase plan of buying back up to $50.0 million of common shares through August 31, 2025. The new repurchase plan will become effective on September 1, 2023, and replace the existing one.

2023 Outlook Reiterated: The company expects net sales of $535 million-$560 million (vs. consensus of $535.14 million), with projected growth of 3.5%-7.5%.

WDFC continues to project the EPS of $4.80-$5.00 (consensus: $4.90) and a gross margin of between 51% and 52%.

"We target a compound annual growth rate for maintenance product revenue in the mid-to-high single digits on a constant currency basis. Achieving year to date growth of 7 percent in constant currency is in-line with our long-term objectives," said Steve Brass, President and CEO.

Price Action: WDFC shares are trading higher by 4.02% at $201.60 premarket on the last check Tuesday.