WD-40 Q2 Earnings Preview: Revenue Growth Slows

WD-40 Company (NASDAQ: WDFC) will reveal its latest earnings results this afternoon. Here’s a quick look at what we can expect.

Last quarter, WD-40 reported $139.1 million in revenue, a 6.8% increase from the previous year. Although the full-year revenue guidance beat expectations, quarterly revenue and operating margin missed the mark. The full-year EPS guidance also fell short of analysts' estimates despite being raised.

This quarter, analysts expect a revenue growth of 2.9% year-on-year, reaching $145.8 million. This marks a slowdown from the 14.6% growth in the same quarter last year. Adjusted earnings are projected at $1.27 per share.

Analysts have grown bearish, with one downward revision in revenue estimates over the past 30 days. Notably, WD-40 has missed revenue estimates four times in the past two years.

Looking at peers in the consumer staples segment, Constellation Brands (NYSE: STZ) saw a 5.8% year-on-year revenue growth, meeting expectations, while McCormick (NYSE: MKC) reported flat revenue, aligning with consensus estimates. Post-results, Constellation Brands’ stock remained unchanged, while McCormick’s stock rose by 4.8%.

Investors in the consumer staples sector have remained cautious, with share prices dropping by 2% on average over the last month. In contrast, WD-40’s stock is up 1.8%, with an average analyst price target of $284 compared to the current share price of $222.