WD-40 Misses Q3 View, Lowers FY Outlook; Shares Down

(RTTNews) - Home care and cleaning products maker WD-40 Co. (WDFC), Wednesday reported an increase in third-quarter profit, driven largely by strong gross margins and lower costs. However, both earnings and revenues for the quarter fell short of Wall Street estimates.

Moving ahead, the company again lowered its full-year financial guidance, sending its shares down about five percent in after-hours trade.

San Diego, California-based WD-40's third-quarter profit rose to $11.0 million or $0.75 per share from $10.4 million or $0.69 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter dropped 3 percent to $92.5 million from $95.7 million a year ago. Analysts had a consensus revenue estimate of $99.4 million for the quarter.

Sales of multi-purpose maintenance products dropped 4 percent to $81.5 million from the prior year, while home care and cleaning products sales increased 1 percent to $11.0 million.

Gross margin for the quarter improved to 53.3 percent from 51.4 percent in the prior year. Selling, general and administrative expenses were down 1 percent to $26.6 million.

For the full year 2015, the company now expects earnings of $3.03 to $3.09 per share on revenues of $383 million to $390 million. Analysts currently expect earnings of $3.11 per share on revenues of $394.6 million for 2015.

Earlier, the company expected earnings of $3.07 to $3.13 per share on revenues of $387 million to $400 million.

"We've adjusted our full year guidance and it reflects the continued impact of foreign currency exchange movements as well as the macroeconomic and political challenges in Eastern Europe," said CFO Jay Rembolt.

WDFC closed Wednesday's trading at $88.82, up $1.57 or 1.80%, on the Nasdaq. The stock, however, dropped $4.21 or 4.74% in after-hours trade.