Household products company WD-40 (NASDAQ: WDFC) will be reporting earnings tomorrow before market open. Here’s what you need to know.
WD-40 beat analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $153.5 million, up 9.3% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.
Is WD-40 a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting WD-40’s revenue to grow 11% year on year to $154.4 million, improving from the 6.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.42 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. WD-40 has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.3% on average.
Looking at WD-40’s peers in the consumer staples segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Conagra’s revenues decreased 6.3% year on year, missing analysts’ expectations by 2%, and General Mills reported a revenue decline of 5%, falling short of estimates by 2.4%. Conagra traded up 1.3% following the results while General Mills was down 3.6%.
Read our full analysis of Conagra’s results here and General Mills’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the consumer staples stocks have shown solid performance, the group has generally underperformed, with share prices down 8.9% on average over the last month. WD-40 is down 3.6% during the same time and is heading into earnings with an average analyst price target of $296 (compared to the current share price of $238).
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