40 raises annual sales outlook after quarterly beat

Overview

• US maintenance products maker's Q4 sales rose 8% yr/yr, beating analyst expectations

• Q4 net income and EPS fell 32% amid higher input and operating costs

• Company repurchased $7 mln in shares, approved new $100 mln buyback program

Outlook

• WD-40 sees FY27 net sales of $715 mln to $735 mln, up 4%-7% from FY26

• Company expects FY27 gross margin of 54.0% to 55.5%

• Company expects FY27 diluted EPS of $6.40 to $6.70, up 5%-10%

Result Drivers

• HIGHER INPUT COSTS - Co said increased costs for specialty chemicals and other inputs pressured gross margin in Q4

• OPERATING EXPENSES - Co attributed higher selling, general and administrative expenses to incentive compensation and increased freight costs

• ADVERTISING SPEND - Co said increased advertising and sales promotion expenses supported sales growth and brand building

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the household products peer group is "buy"

• Wall Street's median 12-month price target for WD-40 Company is $284.76, about 41.4% above its October 20 closing price of $201.41

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 38 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)