WD-40 (WDFC) To Report Earnings Tomorrow: Here Is What To Expect

Kayode Omotosho /
2024/07/09 3:00 am EDT

Household products company WD-40 (NASDAQGS:WDFC) will be announcing earnings results tomorrow afternoon. Here's what to look for.

WD-40 met analysts' revenue expectations last quarter, reporting revenues of $139.1 million, up 6.8% year on year. It was a mixed quarter for the company, with full-year revenue guidance beating analysts' expectations. On the other hand, this quarter's revenue and operating margin unfortunately missed. Furthermore, even though it raised its full-year EPS guidance, that forecast missed analysts' estimates as well.

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 2.9% year on year to $145.8 million, slowing from the 14.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.27 per share.

WD-40 Total Revenue

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing one downward revision over the last 30 days. WD-40 has missed Wall Street's revenue estimates four times 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. Constellation Brands delivered year-on-year revenue growth of 5.8%, meeting analysts' expectations, and McCormick reported flat revenue, in line with consensus estimates. Constellation Brands's stock price was unchanged after the results, while McCormick was up 4.8%.

Read our full analysis of Constellation Brands's results here and McCormick's results here.

Investors in the consumer staples segment have had fairly steady hands going into earnings, with share prices down 2% on average over the last month. WD-40 is up 1.8% during the same time and is heading into earnings with an average analyst price target of $284 (compared to the current share price of $222).

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