May 31, 2024

WD-40 Q3 2024 Earnings Report

WD-40 Company reported a strong third quarter in 2024, marked by record sales and robust volume growth across all trade blocs.

Key Takeaways

WD-40 Company reported a 9% increase in net sales, reaching $155.0 million, driven by strong volume growth across all trade blocs. Diluted earnings per share increased to $1.46, and the company reiterated its fiscal year 2024 guidance.

Total net sales increased by 9% to $155.0 million compared to the prior year fiscal quarter.

Maintenance product sales grew by 10% compared to the prior year fiscal quarter.

Gross margin improved to 53.1% compared to 50.6% in the prior year fiscal quarter.

Diluted earnings per share increased to $1.46 compared to $1.38 in the prior year fiscal quarter.

Total Revenue
$155M
Previous year: $142M
+9.4%
EPS
$1.46
Previous year: $1.38
+5.8%
Gross Margin
53.1%
Previous year: 50.6%
+4.9%
Ad & Promo Expenses
$6
Gross Profit
$81M
Previous year: $71.8M
+12.8%
Cash and Equivalents
$45.3M
Previous year: $38.4M
+18.0%
Free Cash Flow
$18.7M
Previous year: $33.6M
-44.4%
Total Assets
$444M
Previous year: $438M
+1.3%

WD-40

WD-40

WD-40 Revenue by Segment

WD-40 Revenue by Geographic Location

Forward Guidance

The Company reiterated its guidance for fiscal year 2024.

Positive Outlook

  • Net sales growth is projected to be between 6 and 12 percent on a non-GAAP constant currency basis.
  • 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 51.5 and 53 percent.
  • Advertising and promotion investments are projected to be between 5 and 6 percent of net sales.
  • Net income is projected to be between $67.7 million and $71.8 million.

Challenges Ahead

  • The provision for income tax is expected to be between 23 and 24 percent.
  • Diluted earnings per share is expected to be between $5.00 and $5.30 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 affect the Company’s financial results.
  • Progress on gross margin this fiscal year and continue to move closer to our 55 percent target

Revenue & Expenses

Visualization of income flow from segment revenue to net income