NASDAQ$WDFC

WD-40 Company · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

WD-40 Company's first quarter 2020 financial results were reported, with management reiterating the previously issued full fiscal year 2020 earnings guidance.

WD-40 Company reported a decrease in net sales by 3% to $98.6 million compared to the prior year fiscal quarter. Net income decreased by 8% to $12.2 million, and diluted earnings per share were $0.88 compared to $0.95 in the prior year fiscal quarter.

  • Total net sales for the first quarter were $98.6 million, a decrease of 3 percent compared to the prior year fiscal quarter.
  • Net income for the first quarter was $12.2 million, a decrease of 8 percent from the prior year fiscal quarter.
  • Diluted earnings per share were $0.88 compared to $0.95 in the prior year fiscal quarter.
  • Gross margin percentage was 54.3 percent compared to 55.1 percent in the prior year fiscal quarter.

Headline financials

Total Revenue

$98.6M

Previous: $101M-2.7%
EPS

$0.88

Previous: $0.95-7.4%
Gross Margin

54.3%

Previous: 55.1%-1.5%
Ad & Promo Expenses

$5.6M

Previous: $5.97M-6.1%
SG&A Expenses

$32.6M

Previous: $32.7M-0.4%
Capital Expenditures

-$5.97M

Previous: -$1.29M-361.7%
Free Cash Flow

$6.23M

Previous: $12M-48.0%
Net Income

$12.2M

Previous: $13.3M-8.2%
Operating Income

$14.7M

Previous: $16.4M-10.3%
Gross Profit

$53.5M

Previous: $55.8M-4.1%
Cash & Equivalents

$28.7M

Previous: $31.6M-9.2%
Total Assets

$317M

Previous: $295M+7.8%
Stock-Based Comp

$2.21M

Previous: $1.97M+12.7%

Revenue & EPS history

WD-40 · Revenue · Quarterly

$98.6M

Q1 2020-2.7%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

WD-40 · $133M total across 1 segment · Q3 2023

  • Maintenance Products
    $133M+15.4%

Forward guidance

The company reiterates the following guidance for fiscal year 2020: Net sales growth is projected to be between 3 and 7 percent with net sales expected to be between $436 million and $453 million. Diluted earnings per share is expected to be between $4.74 and $4.83 based on an estimated 13.7 million weighted average shares outstanding.

Tailwinds

  • Net sales growth is projected to be between 3 and 7 percent.
  • Net sales expected to be between $436 million and $453 million.
  • Gross margin percentage for the full year is expected to be between 54 and 55 percent.
  • Advertising and promotion investments are projected to be between 5.5 and 6.0 percent of net sales.
  • Diluted earnings per share is expected to be between $4.74 and $4.83.

Headwinds

  • Fluctuating crude oil prices may have an impact on the company’s fiscal year 2020 guidance.
  • Foreign currency exchange rates may have an impact on the company’s fiscal year 2020 guidance.
  • Guidance does not include any future acquisitions.
  • Guidance does not include any future divestitures.
  • Revenue softness experienced in the first quarter was primarily driven by the timing of customer orders.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.3%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+1.9%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+20.9%

Q3 2023

Best reaction

-14.0%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.8%-6.6%-5.1%
Q1 2026-6.7%+0.4%+17.2%
Q4 2025+2.8%+0.6%-1.0%
Q3 2025+1.0%-3.5%-1.4%
Q2 2025-8.2%-6.7%-1.4%
Q1 2025-5.0%-3.9%-0.7%
Q4 2024-4.7%+0.1%+5.8%
Q3 2024+3.5%+11.0%+13.5%
Q2 2024-10.0%-8.8%-9.9%
Q1 2024+14.6%+14.8%+11.7%
Q4 2023-1.7%+2.1%+6.8%
Q3 2023+20.9%+18.3%+16.9%
Q2 2023-3.5%-2.6%+3.3%
Q1 2023+2.0%+8.4%+7.7%
Q4 2022-14.0%-15.5%-0.7%
Q3 2022-13.8%-16.7%-12.0%
Q2 2022+6.9%+6.2%+4.1%
Q1 2022+3.6%+6.1%-5.8%
Q4 2021-8.6%-4.8%-1.0%
Q3 2021+2.5%+0.9%-4.4%
Q2 2021-8.1%-15.7%-20.3%
Q1 2021+13.5%+7.1%+18.9%
Q4 2020+19.9%+20.1%+31.3%
Q3 2020-4.4%-4.7%-3.3%
Q2 2020-11.7%-1.5%+0.2%
Q1 2020-2.2%-0.7%-2.6%
Q4 2019-0.3%+0.6%+3.0%
Q3 2019+8.2%+10.0%+12.9%
Q2 2019-3.6%-2.0%-3.4%
Q1 2019-4.7%-5.2%-1.3%
Q4 2018+3.0%+2.3%+6.9%
Q3 2018+4.4%+7.3%+8.9%
Q2 2018-1.8%+0.4%+1.5%
Q1 2018+3.6%+4.1%-2.5%
Q4 2017-3.4%-5.2%-2.2%
Q3 2017-3.4%-3.0%-5.3%
Q2 2017-4.3%-2.4%-1.6%
Q1 2017-11.5%-13.8%-9.9%
Q4 2016+0.1%-1.9%-0.2%
Q3 2016+2.7%+4.8%-0.4%
Q2 2016-5.2%
Q1 2016+1.1%
Q4 2015+1.7%
Q3 2015-5.0%
Q2 2015-4.4%
Q1 2015+1.3%
Q4 2014+7.5%
Q3 2014-6.6%
Q2 2014-4.2%
Q1 2014-2.3%
Q4 2013+6.3%
Q3 2013-1.2%
Q2 2013+2.0%
Q1 2013+11.4%
Q1 2012+11.4%
Q4 2010-0.9%
Q4 2012-7.9%
Q3 2011-5.4%
Q3 2012-5.8%
Q2 2011-1.3%
Q2 2012+0.6%
Q4 2011+1.4%
Q1 2011+1.4%
Q3 2010+6.2%
Q2 2010+2.3%

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