NASDAQ$WDFC

WD-40 Company · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

WD-40 Company reported a 3% increase in net sales for the fourth quarter, but a 57% decrease in net income compared to the prior year fiscal quarter.

WD-40 Company reported fourth quarter net sales of $115.2 million, a 3% increase compared to the prior year fiscal quarter. Net income for the fourth quarter was $8.4 million, a 57% decrease compared to the prior year fiscal quarter. Diluted earnings per share were $0.61 in the fourth quarter, compared to $1.42 per share for the prior year fiscal quarter.

  • Total net sales for the fourth quarter were $115.2 million, an increase of 3 percent compared to the prior year fiscal quarter.
  • Net income for the fourth quarter was $8.4 million, a decrease of 57 percent compared to the prior year fiscal quarter.
  • Diluted earnings per share were $0.61 in the fourth quarter, compared to $1.42 per share for the prior year fiscal quarter.
  • Gross margin was 51.2 percent in the fourth quarter compared to 56.3 percent in the prior year fiscal quarter.

Headline financials

Total Revenue

$115M

Previous: $112M+3.2%
EPS (adj)

$0.61

Previous: $1.42-57.0%
Capital Expenditures

$4.27M

Previous: $1.9M+125.2%
Free Cash Flow

$16.5M

Previous: $30M-45.1%
Net Income

$8.41M

Previous: $19.7M-57.2%
Operating Income

$12.5M

Previous: $24.5M-49.1%
Gross Profit

$59M

Previous: $62.8M-6.0%
Cash & Equivalents

$86M

Previous: $56.5M+52.2%
Total Assets

$430M

Previous: $363M+18.6%
Stock-Based Comp

$1.67M

Previous: $749K+123.0%

Revenue & EPS history

WD-40 · Revenue · Quarterly

$115M

Q4 2021+3.2%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

WD-40 · $104M total across 1 segment · Q4 2021

  • Maintenance Products
    $104M+3.6%

Forward guidance

The Company issued the following guidance for fiscal year 2022: Net sales growth is projected to be between 7 and 11 percent with net sales expected to be between $522 million and $542 million. Gross margin percentage for the full year is expected to be between 53 and 54 percent. Advertising and promotion investments are projected to be between 5.5 and 6.0 percent of net sales. The provision for income tax is expected to be between 21 and 22 percent. Net income is projected to be between $71.7 million and $73.6 million. Diluted earnings per share is expected to be between $5.24 and $5.38 based on an estimated 13.7 million weighted average shares outstanding.

Tailwinds

  • Net sales growth is projected to be between 7 and 11 percent.
  • Net sales expected to be between $522 million and $542 million.
  • Gross margin percentage for the full year is expected to be between 53 and 54 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 $5.24 and $5.38.

Headwinds

  • Guidance does not include any future acquisitions or divestitures.
  • Guidance does not include the impact of fluctuating foreign currency exchange rates.
  • Unanticipated inflationary headwinds may impact the Company’s financial results.
  • Unforeseen events may impact the Company’s financial results.
  • Provision for income tax is expected to be between 21 and 22 percent.

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 Q4 2021

Historical avgQ4 2021

-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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