WD-40 Whiffs on Earnings
Jan 10th 2012 9:48AM
Updated Jan 10th 2012 9:52AM
WD-40 (NAS: WDFC) reported earnings on Jan. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 30 (Q1), WD-40 missed slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share contracted significantly.
Margins dropped across the board.
WD-40 reported revenue of $85 million. The five analysts polled by S&P Capital IQ expected a top line of $86 million. Sales were 5.0% higher than the prior-year quarter's $81 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.42. The five earnings estimates compiled by S&P Capital IQ anticipated $0.54 per share. GAAP EPS of $0.42 for Q1 were 21% lower than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 48.7%, 220 basis points worse than the prior-year quarter. Operating margin was 12.1%, 440 basis points worse than the prior-year quarter. Net margin was 8.0%, 320 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $86 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $359 million. The average EPS estimate is $2.33.
The stock has a five-star rating out of five) at Motley Fool CAPS, with 166 members out of 181 rating the stock outperform, and 15 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give WD-40 a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WD-40 is hold, with an average price target of $41.75.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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