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May 31, 2022
WD-40 Q3 2022 Earnings Report
WD-40 Company's financial performance declined due to global disruptions and macroeconomic challenges
Key Takeaways
WD-40 Company reported a decrease in net sales, net income, and diluted earnings per share for the third quarter of fiscal year 2022, impacted by global disruptions and a challenging macroeconomic environment.
Total net sales decreased by 9 percent compared to the prior year fiscal quarter, totaling $123.7 million.
Net income decreased by 31 percent compared to the prior year fiscal quarter, amounting to $14.5 million.
Diluted earnings per share were $1.07, compared to $1.52 per share for the prior year fiscal quarter.
Gross margin was 47.7 percent, compared to 53.1 percent in the prior year fiscal quarter.
WD-40
WD-40
WD-40 Revenue by Segment
WD-40 Revenue by Geographic Location
Revenue by Segment
Americas Revenue
CapyFin.comEIMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEIMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.com Forward Guidance
The Company updated its guidance for fiscal year 2022 with net sales growth projected to be between 6 and 9 percent, and diluted earnings per share expected to be between $5.02 and $5.10.
Positive Outlook
- Net sales growth is projected to be between 6 and 9 percent.
- Net sales are expected to be between $519 million and $532 million.
- Gross margin percentage for the full year is expected to be around 50 percent.
- Advertising and promotion investments are projected to be between 5.0 and 5.5 percent of net sales.
- The provision for income tax is expected to be between 20 and 21 percent.
Challenges Ahead
- Net income is projected to be between $69.0 million and $70.1 million.
- Diluted earnings per share is expected to be between $5.02 and $5.10 based on an estimated 13.7 million weighted average shares outstanding.
- Guidance does not include any future acquisitions or divestitures or the impact of fluctuating foreign currency exchange rates.
- Unanticipated inflationary headwinds may further impact the Company’s financial results.
- COVID-19 related lockdowns in China and other unforeseen events may further impact the Company’s financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income