Household products company WD-40 (NASDAQ:WDFC) will be announcing earnings results tomorrow after market hours. Here’s what to look for.
WD-40 beat analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $156 million, up 11.1% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.
Is WD-40 a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting WD-40’s revenue to grow 5% year on year to $147.4 million, slowing from the 12.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.26 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. WD-40 has missed Wall Street’s revenue estimates twice over the last two years.
Looking at WD-40’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. General Mills delivered year-on-year revenue growth of 2%, beating analysts’ expectations by 1.9%, and Simply Good Foods reported revenues up 10.6%, falling short of estimates by 1.7%. General Mills traded down 2.9% following the results.
Read our full analysis of General Mills’s results here and Simply Good Foods’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the consumer staples stocks have shown solid performance, the group has generally underpeformed, with share prices down 7.3% on average over the last month. WD-40 is down 13.4% during the same time and is heading into earnings with an average analyst price target of $301 (compared to the current share price of $234.02).
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