WD-40 Company Tops Q2 Expectations

reported better-than-expected profit for its second quarter. The San Diego, California-based company reported a quarterly profit of $11.3 million, or $0.76 per share, versus a year-ago profit of $10.3 million, or $0.67 per share. Its total sales gained 3.3 percent to $97.3 million. However, analysts were expecting earnings of $0.72 per share on revenue of $97.02 million in revenue. Net sales of multi-purpose maintenance products climbed 3 percent in the second fiscal quarter, while sales of homecare and cleaning products rose 3 percent. Sales in its Asia-Pacific segment climbed 28 percent, while sales in the Americas slipped 1 percent. Sales in its EMEA segment climbed 1 percent. Gross margin widened to 52.6 percent in the second quarter, versus 51.6 percent in the year-ago quarter. Selling, general and administrative expenses rose 3 percent in the quarter to $27.4 million, while advertising and sales promotion expenses slipped 9 percent to $5.5 million. The average estimate among 13 Estimize users was for earnings of $0.72 per share and revenue of $96.21 million. "Our underlying business is performing in line with our previously issued guidance. However, in view of current foreign currency exchange conditions, we have updated our previously issued guidance," said Jay Rembolt, WD-40 Company's vice president and chief financial officer. "Foreign currency exchange fluctuations have impacted our business performance in the first half of the year and are expected to do so for the duration of the fiscal year." For fiscal year 2015, WD-40 now expects a profit of $3.07 to $3.13 per share on revenue of $387 million to $400 million. The company had earlier expected earnings of $3.07 to $3.16 per share on revenue of $398 million to $413 million. WD-40 Company shares finished up 0.18 percent at $87.14 during regular trading hours.