WD-40 Company Looks Pretty Oiled-Up, Here's An Earnings Preview

The WD-40 Company WDFC will report its third quarter financial results on Wednesday afternoon, after the market closes. And, according to Estimize, the company is expected to deliver low-double-digits year-over-year earnings growth.

In the third quarter of 2014, earnings came in at $0.69 per share, and revenue, at $95.7 million. For the current quarter, the Street is modeling earnings of $0.76 per share on sales of $99.4 million, up about 10 percent year-over-year. Meanwhile, the crowd is more bullish, and projects earnings of $0.78 per share on revenue of $99.35 million.

While these estimates imply a surge from earnings and revenue reported a year ago, they also involve no quarter-over-quarter earnings growth.

Further Thoughts

In a recent SeekingAlpha article, L&F Capital Management analysts also previewed WD-40’s earnings. They expect the company to beat earnings estimates by $0.01 per share, and to miss revenue projections by $400K.

“Though we project that forex issues will not persist much longer, we believe currency headwinds will damage the top-line this quarter. However, WDFC's management is top-notch and will fight to combat headwinds with share buybacks to aid the bottom-line after the expected top-line hit from forex,” the authors explain.

They add, “Q3 YoY revenue has grown at an average rate of about 4.8%. We project 2015 Q3's revenue in-line with this growth, with bias to growth in more recent years. On top of this, the 5 Strategic Initiatives plan should aid sales in all avenues.”