WD-40 Co. Earnings Preview

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If WD-40 Co. (NAS: WDFC) misses estimates again, it will be the third consecutive quarter for the company. The company will unveil its latest earnings on Tuesday. WD-40 provides easy-to-use solutions for a wide variety of maintenance issues.

What analysts say:
 

  • Buy, sell, or hold?: Analysts think investors should stand pat on WD-40 with analysts unanimously rating it hold. Analysts don't like WD-40 as much as competitor Stepan overall. One out of one analysts rate Stepan a buy compared to zero of five for WD-40. That rating hasn't budged in three months as analysts have remained steady in their opinion of the stock.
  • Revenue forecasts: On average, analysts predict $87.9 million in revenue this quarter. That would represent a rise of 9% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.54 per share. Estimates range from $0.51 to $0.56.

What our community says:
CAPS All-Stars are solidly backing the stock with 92.2% assigning it an outperform rating. The community at large backs the All-Stars with 91.6% granting it a rating of outperform. Fools are bullish on WD-40, though the message boards have been quiet lately with only 68 posts in the past 30 days. WD-40 has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
WD-40's income has fallen year over year by an average of 9.9% over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q3

Q2

Q1

Q4

Gross Margin

49.3%

51.8%

50.9%

50.7%

Operating Margin

13.8%

17.5%

16.5%

13.4%

Net Margin

9.4%

11.5%

11.2%

8.5%

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At the time this article was published

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