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WD-40
🇺🇸 NASDAQ:WDFC
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Nov 30, 2019

WD-40 Q1 2020 Earnings Report

WD-40 Company's first quarter 2020 financial results were reported, with management reiterating the previously issued full fiscal year 2020 earnings guidance.

Key Takeaways

WD-40 Company reported a decrease in net sales by 3% to $98.6 million compared to the prior year fiscal quarter. Net income decreased by 8% to $12.2 million, and diluted earnings per share were $0.88 compared to $0.95 in the prior year fiscal quarter.

Total net sales for the first quarter were $98.6 million, a decrease of 3 percent compared to the prior year fiscal quarter.

Net income for the first quarter was $12.2 million, a decrease of 8 percent from the prior year fiscal quarter.

Diluted earnings per share were $0.88 compared to $0.95 in the prior year fiscal quarter.

Gross margin percentage was 54.3 percent compared to 55.1 percent in the prior year fiscal quarter.

Total Revenue
$98.6M
Previous year: $101M
-2.7%
EPS
$0.88
Previous year: $0.95
-7.4%
Gross Margin
54.3%
Previous year: 55.1%
-1.5%
Ad & Promo Expenses
$5.6M
Previous year: $5.97M
-6.1%
SG&A Expenses
$32.6M
Previous year: $32.7M
-0.4%
Gross Profit
$53.5M
Previous year: $55.8M
-4.1%
Cash and Equivalents
$28.7M
Previous year: $31.6M
-9.2%
Free Cash Flow
$9.24M
Previous year: $7.72M
+19.7%
Total Assets
$317M
Previous year: $295M
+7.8%

WD-40

WD-40

WD-40 Revenue by Segment

WD-40 Revenue by Geographic Location

Forward Guidance

The company reiterates the following guidance for fiscal year 2020: Net sales growth is projected to be between 3 and 7 percent with net sales expected to be between $436 million and $453 million. Diluted earnings per share is expected to be between $4.74 and $4.83 based on an estimated 13.7 million weighted average shares outstanding.

Positive Outlook

  • Net sales growth is projected to be between 3 and 7 percent.
  • Net sales expected to be between $436 million and $453 million.
  • Gross margin percentage for the full year is expected to be between 54 and 55 percent.
  • Advertising and promotion investments are projected to be between 5.5 and 6.0 percent of net sales.
  • Diluted earnings per share is expected to be between $4.74 and $4.83.

Challenges Ahead

  • Fluctuating crude oil prices may have an impact on the company’s fiscal year 2020 guidance.
  • Foreign currency exchange rates may have an impact on the company’s fiscal year 2020 guidance.
  • Guidance does not include any future acquisitions.
  • Guidance does not include any future divestitures.
  • Revenue softness experienced in the first quarter was primarily driven by the timing of customer orders.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View WD-40