Preview: WD-40's Earnings

WD-40 WDFC announces its next round of earnings this Thursday, April 08. Here is Benzinga's everything-that-matters guide for this Thursday's Q2 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

WD-40 earnings will be near $1.32 per share on sales of $114.33 million, according to analysts. In the same quarter last year, WD-40 reported earnings per share of $1.04 on sales of $100.05 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, EPS would be up 26.92%. Sales would be up 14.27% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of WD-40 were trading at $316.81 as of April 06. Over the last 52-week period, shares are up 81.95%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. WD-40 is scheduled to hold the call at 17:00:00 ET and can be accessed here.