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WD-40
🇺🇸 NASDAQ:WDFC
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•
Nov 30, 2023

WD-40 Q1 2024 Earnings Report

WD-40's financial performance in Q1 2024 reflected significant sales growth and improved gross margin.

Key Takeaways

WD-40 Company reported a 12% increase in net sales to $140.4 million for the first quarter of fiscal year 2024. Net income increased by 25% to $17.5 million, with diluted earnings per share at $1.28. The company reiterated its fiscal year 2024 guidance.

Total net sales increased by 12% compared to the prior year fiscal quarter.

Gross margin improved to 53.8% compared to 51.4% in the prior year fiscal quarter.

Net income increased 25% from the prior year fiscal quarter.

Diluted earnings per share were $1.28 compared to $1.02 for the prior year fiscal quarter.

Total Revenue
$140M
Previous year: $125M
+12.4%
EPS
$1.28
Previous year: $1.02
+25.5%
Gross Margin
53.8%
Previous year: 51.4%
+4.7%
Gross Profit
$75.6M
Previous year: $64.3M
+17.6%
Cash and Equivalents
$50.3M
Previous year: $36.9M
+36.4%
Free Cash Flow
$26.1M
Previous year: $8.98M
+191.0%
Total Assets
$431M
Previous year: $441M
-2.5%

WD-40

WD-40

WD-40 Revenue by Segment

WD-40 Revenue by Geographic Location

Forward Guidance

The Company reiterated the following guidance for fiscal year 2024:

Positive Outlook

  • Net sales growth is projected to be between 6 and 12 percent with net sales expected to be between $570 million and $600 million on a non-GAAP constant currency basis.
  • Gross margin for the full year is expected to be between 51 and 53 percent.
  • Advertising and promotion investments are projected to be between 5 and 6 percent of net sales.
  • The provision for income tax is expected to be between 24 and 25 percent.
  • Net income is projected to be between $65 million and $70 million.

Challenges Ahead

  • Diluted earnings per share is expected to be between $4.78 and $5.15 based on an estimated 13.6 million weighted average shares outstanding.
  • Unanticipated inflationary headwinds may affect the Company’s financial results.
  • Other unforeseen events may further affect the Company’s financial results.
  • Results can vary from quarter to quarter based on the timing of promotional activities
  • Results can vary from quarter to quarter based on market mix, and the impacts from a world which is filled with volatility, uncertainty, complexity, and ambiguity

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View WD-40