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May 31, 2023
WD-40 Q3 2023 Earnings Report
WD-40's financial performance improved with a 15% increase in net sales and a 30% rise in net income compared to the prior year fiscal quarter.
Key Takeaways
WD-40 Company reported a strong third quarter with a 15% increase in net sales, reaching $141.7 million. Net income also saw a significant rise of 30%, amounting to $18.9 million, and diluted earnings per share increased to $1.38. The company reiterated its full-year guidance but anticipates results at the lower end of the range due to a volatile environment.
Total net sales for the third quarter increased by 15% to $141.7 million.
Net income for the third quarter rose by 30% to $18.9 million.
Diluted earnings per share increased to $1.38 in the third quarter.
The board of directors approved a new $50 million share buyback plan.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company reiterated the following guidance for fiscal year 2023:
Positive Outlook
- Net sales growth is projected to be between 3.5 and 7.5 percent with net sales expected to be between $535 million and $560 million.
- Gross margin for the full year is expected to be between 51 and 52 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 around 21 percent.
- Net income is projected to be between $64.5 million and $68.5 million.
Challenges Ahead
- Unanticipated inflationary headwinds may affect the Company’s financial results.
- Changes in foreign currency exchange rates may affect the Company’s financial results.
- Other unforeseen events may further affect the Company’s financial results
- We do continue to operate in a volatile environment
Historical Earnings Impact
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Avg. Return Before/After Earnings
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