The household lubricant maker posted $195.1 million in quarterly sales, topped profit forecasts, expanded operating margin, and lifted full-year revenue and earnings guidance on stronger demand for its core spray lubricant business.
WD-40 Company shares climbed as much as 14.5% in Thursday overnight trading on Blue Ocean ATS after the household lubricant maker reported quarterly results that beat Wall Street estimates on both revenue and earnings per share and raised its full-year outlook. Sales rose 24.3% from a year earlier to $195.1 million, ahead of the $173 million analysts expected, while earnings per share came in at $2.24 versus forecasts of $1.57. The company said stronger-than-expected demand for its core spray lubricant business supported the performance. Operating margin increased to 20.7% from 17.4% a year earlier, while free cash flow margin eased to 15% from 21.6% but remained above the company’s average over the past two years. WD-40 lifted full-year revenue guidance to $682.5 million at the midpoint from $642.5 million previously and said full-year earnings per share is now expected to reach $6.20 at the midpoint, above analyst projections. Shares closed at $272.00 after the report, giving the company a market capitalization of $3.02 billion.