WD-40 Co Profit Misses Estimate; Stock Down - Update

(RTTNews) - Consumer products company WD-40 Co (WDFC), Wednesday reported a marginal increase in third-quarter profit amid a three percent climb in sales, even as results fell short of Wall Street expectations.

The company lifted its earnings outlook for the full year and narrowed sales expectations. Following the announcement, the company's stock dropped over 4 percent in after-hours trade on the Nasdaq.

San Diego, California-based WD-40 posted quarterly net earnings of $10.40 million or $0.69 per share, compared with $10.26 million or $0.66 per share last year. On average, four analysts polled by Thomson Reuters expected earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the third quarter rose to $95.7 million from $93 million a year ago. Analysts expected revenues of $99.16 million for the quarter.

Sales of multipurpose maintenance products grew 3 percent, and Homecare and cleaning products edged down 1 percent.

Gross margin for the third quarter was up 10 basis points at 51.4 percent, and operating expenses were up by about $1.2 million at $34 million.

For the full year, WD-40 now projects earnings of $2.70 to $2.83 per share and revenues of $380 million to $387 million. The company earlier expected earnings of $2.65 to $2.80 per share and sales of $383 million to $398 million.

Analysts currently expect earnings of $2.75 per share on sales of $387.44 million for the year.

WDFC closed Wednesday at $76.11, up $0.45 or 0.59%, on a volume of about 75k shares. In after hours, the stock dropped $3.31 or 4.35%.