Household products company WD-40 (NASDAQ:WDFC) missed Wall Street’s revenue expectations in Q2 CY2025 as sales only rose 1.2% year on year to $156.9 million. The company’s full-year revenue guidance of $610 million at the midpoint came in 2.7% below analysts’ estimates. Its GAAP profit of $1.54 per share was 10% above analysts’ consensus estimates.
Is now the time to buy WD-40? Find out in our full research report.
-
Revenue: $156.9 million vs analyst estimates of $160.6 million (1.2% year-on-year growth, 2.3% miss)
-
EPS (GAAP): $1.54 vs analyst estimates of $1.40 (10% beat)
-
Adjusted EBITDA: $29.4 million vs analyst estimates of $28.5 million (18.7% margin, 3.2% beat)
-
The company dropped its revenue guidance for the full year to $610 million at the midpoint from $615 million, a 0.8% decrease
-
EPS (GAAP) guidance for the full year is $5.45 at the midpoint, missing analyst estimates by 1.6%
-
Operating Margin: 17.4%, in line with the same quarter last year
-
Free Cash Flow Margin: 21.6%, up from 12% in the same quarter last year
-
Market Capitalization: $3.11 billion
“Today we reported third quarter net sales of $156.9 million — a new record high for net sales in a quarter — reflecting a modest 1 percent year-over-year increase,” said Steve Brass, president and CEO.
Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ:WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
With $612.5 million in revenue over the past 12 months, WD-40 is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.
As you can see below, WD-40’s sales grew at a mediocre 6.7% compounded annual growth rate over the last three years. This shows it couldn’t generate demand in any major way and is a tough starting point for our analysis.
This quarter, WD-40’s revenue grew by 1.2% year on year to $156.9 million, falling short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 6.3% over the next 12 months, similar to its three-year rate. This projection is above average for the sector and implies its newer products will help maintain its historical top-line performance.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
