WD-40 Q4 2022 Earnings Report
Key Takeaways
WD-40 Company reported a 13% increase in net sales for the fourth quarter, reaching $130.4 million. Net income increased by 77% to $14.8 million, with diluted earnings per share at $1.08. The company's performance was driven by growth in maintenance products, particularly WD-40 Multi-Use Product and WD-40 Specialist.
Total net sales for the fourth quarter increased by 13% to $130.4 million compared to the prior year.
Net income for the fourth quarter rose by 77% to $14.8 million.
Diluted earnings per share for the fourth quarter were $1.08, up from $0.61 in the prior year.
Maintenance products sales increased by 17%, driven by WD-40 Multi-Use Product and WD-40 Specialist.
WD-40
WD-40
WD-40 Revenue by Segment
WD-40 Revenue by Geographic Location
Forward Guidance
The Company issued the following guidance for fiscal year 2023: · Net sales growth is projected to be between 5 and 10 percent with net sales expected to be between $545 million and $570 million. · Gross margin percentage for the full year is expected to be between 51 and 53 percent. · Advertising and promotion investments are projected to be between 5.0 and 6.0 percent of net sales. · The provision for income tax is expected to be around 22 percent. · Net income is projected to be between $69.0 million and $71.0 million. · Diluted earnings per share is expected to be between $5.09 and $5.24 based on an estimated 13.6 million weighted average shares outstanding.
Positive Outlook
- Net sales growth is projected to be between 5 and 10 percent
- Net sales expected to be between $545 million and $570 million
- Gross margin percentage for the full year is expected to be between 51 and 53 percent.
- Advertising and promotion investments are projected to be between 5.0 and 6.0 percent of net sales.
- The provision for income tax is expected to be around 22 percent.
Challenges Ahead
- Net sales guidance was calculated using recent foreign currency exchange rates and reflects currency headwinds of approximately 5 percent.
- This guidance does not include any future acquisitions or divestitures.
- Unanticipated inflationary headwinds may impact the Company’s financial results.
- COVID-19 related disruptions may impact the Company’s financial results.
- Other unforeseen events may further impact the Company’s financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income