On April 9, 2024, WD-40 Co (WDFC, Financial) released its 8-K filing, detailing its financial results for the second quarter ended February 29, 2024. The company, known for its lubricants and cleaning products, saw a 7% increase in net sales compared to the same quarter of the previous year, reaching $139.1 million. However, this figure fell short of analyst revenue estimates of $140.5 million. Net income for the quarter was reported at $15.5 million, a 6% decrease from the prior year. Despite this, earnings per share (EPS) beat expectations, coming in at $1.14, compared to the estimated $1.13.
WD-40 Co (WDFC, Financial) is a global company that manufactures and sells lubricants and cleaning products, with a product range that includes the iconic WD-40 aerosol spray, degreasers, rust removers, and a variety of maintenance and cleaning products. The company operates through three geographical segments: Americas, Europe/Middle East/Africa (EIMEA), and Asia-Pacific, with the Americas segment accounting for nearly half of the company's revenue.
The company's gross margin improved to 52.4% in the second quarter, up from 50.8% in the prior year fiscal quarter. This financial achievement is particularly important for a company in the chemicals industry, where margins are critical to profitability. WD-40 Co (WDFC, Financial) also declared a regular quarterly dividend of $0.88 per share, illustrating its commitment to returning value to shareholders.
WD-40 Co (WDFC, Financial) faced increased expenses, with selling, general, and administrative expenses up 19% to $45.0 million, and advertising and sales promotion expenses rising 12% to $6.7 million. Despite these challenges, the company is confident in its long-term targets and has increased its fiscal year 2024 net income and diluted earnings per share guidance.
According to Steve Brass, WD-40 Company's president and CEO, the company has made significant progress and is focusing on its core maintenance products, which represent 94% of total net sales. The decision to pursue a sale of the U.S. and U.K. Homecare and Cleaning Products portfolio is aimed at concentrating on higher-margin products and creating space for future innovation.
WD-40 Co (WDFC, Financial) has also updated its fiscal year 2024 guidance, expecting net sales growth between 6 and 12 percent, with net sales anticipated to be between $570 million and $600 million on a non-GAAP constant currency basis. The company is narrowing its gross margin range and increasing its net income and diluted earnings per share guidance based on its year-to-date performance.
For a more detailed analysis and further information on WD-40 Co (WDFC, Financial)'s financials, including balance sheets and cash flow statements, investors and interested parties are encouraged to review the full 8-K filing. The company is poised to continue its strategic focus on maintenance products, aiming for sustainable, profitable growth.
Explore the complete 8-K earnings release (here) from WD-40 Co for further details.
