Favorable Spot Prices For Oil Will Benefit WD-40 In Q2, Says Analyst

DA Davidson analyst Linda Bolton Weiser reiterated a Buy rating on the shares of WD-40 Company WDFC with a price target of $207.00.
The company will report its second-quarter FY23 earnings on April 6, after the market close.
The analyst said comparisons based on current spot prices have become even more favorable since WDFC last reported, for oil and tin, and comparisons for plastic resin have become just slightly less favorable.
The majority of WDFC's sales FX translation exposure is to the British pound, with lesser exposures to the Canadian and Australian dollars and Chinese yuan.
The analyst models a negative 4.4% FX effect on sales growth in Q2 compared to a -6% in Q1 as the British pound has appreciated since early January.
The strengthening of the British pound is a negative, however, for FX transactions in Europe, which affects WDFC's gross margin.
The analyst's sales estimate for Q2 is $125.8 million, with EPS of $$1.01 and a gross margin of 51.4%.
Price Action: WDFC shares are trading higher by 1.39% at $174.92 on the last check Thursday.

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