- WD-40 reported earnings per share (EPS) of $1.23 for Q4, which is lower than the estimated $1.34.
- The reported EPS is slightly higher compared to last year, which was $1.21.
- The company achieved a net sales figure of $156.0 million, marking an 11% increase year-over-year.
- WD-40 saw a rise in its gross margin, reaching 54.1%, compared to 51.4% last year.
- For 2024 pro forma results, WD-40 forecasts net sales growth between 6% and 11%. Their net sales are expected to be in the range of $600 million to $630 million on a non-GAAP constant currency basis.
- The company expects its gross margin for the full year to be between 54% and 55%.
- Guidance for fiscal year 2025 projects a similar net sales growth rate of 6% to 11%, not accounting for the divestiture of their homecare and cleaning brands.
- The improvement in gross margin is attributed to a favorable sales mix, decreased input costs, and enhanced operational efficiencies globally.
- Analyst ratings for WD-40 include one buy, one hold, and no sell recommendations.
“`
WD-40 Company on Smartkarma
Analysts on Smartkarma have been closely tracking WD-40 Company‘s performance and strategic moves. Baptista Research‘s coverage highlights the company’s positive trajectory, with third-quarter fiscal year 2024 earnings showing continued growth across all trade blocks. Net sales of $155 million, reflecting a 9% increase compared to the previous year, underscore WD-40’s solid momentum. This optimistic outlook is further supported by the premiumization of product offerings, as evidenced by strategic acquisitions like Theron Marketing in Brazil, indicating a shift towards a direct market model to boost revenues in the region.
On the contrary, Value Investors Club takes a bearish stance on WD-40, suggesting a shorting opportunity due to a potentially lower earnings growth outlook. Concerns over a high earnings multiple and a projected 50% decrease in stock price raise caution flags. Factors such as a temporary demand spike, significant price hikes, and future growth uncertainties contribute to the bear sentiment. While analyst opinions differ, investors are advised to weigh both bullish and bearish perspectives when assessing WD-40 Company‘s investment prospects.
A look at WD-40 Company Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
WD-40 Company, known for its multi-purpose lubricant products and heavy-duty hand cleaners, has a mixed outlook based on Smartkarma Smart Scores. While the company’s momentum score is strong at 4, indicating positive market momentum, other factors such as value, dividend, growth, and resilience scored moderately at 2, 3, 3, and 3 respectively. This suggests that although WD-40 Company is experiencing good market momentum, there may be room for improvement in areas such as value and growth.
With its flagship product WD-40 acting as a versatile lubricant and cleaner, the company has established a strong presence in the market. The 3-IN-ONE Oil provides precise lubrication, while products like Lava heavy-duty hand cleaner cater to various household cleaning needs. While WD-40 Company shows promise in terms of momentum, investors may want to monitor developments in value and growth aspects for a more comprehensive long-term investment strategy.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
