WD-40 Profit Misses Street; Reaffirms Outlook - Update

(RTTNews) - WD-40 Co (WDFC), a maker of maintenance products, Tuesday reported a marginal drop in second-quarter profit as lower margins largely offset a nine percent growth in sales. Quarterly earnings missed Wall Street estimates, while sales exceeded expectations.

The company reiterated its guidance for 2014.

San Diego, California-based WD-40 posted second-quarter net income of $10.3 million or $0.67 per share, compared with $10.46 million or $0.66 per share last year. Earnings-per-share results for the recent quarter reflect a lower share count.

On average, five analysts polled by Thomson Reuters expected earnings of $0.68 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter grew to $94.2 million from $86.7 million a year ago. Analysts projected sales of $92.3 million.

Sales of multi-purpose maintenance products sales, which include the WD-40 and 3-IN-ONE brands, were up 11 percent from the prior year. Homecare and cleaning products sales slid 8 percent.

Among regions, growth was seen in the Americas and Europe, Middle East and Africa.

This was somewhat offset by sales decline in Asia-Pacific due to a larger than normal backlog of orders, the impact of foreign currency exchange rates from Australian operations as well as some softness in the Chinese market.

Results were mainly dragged down by operating expenses that climbed to $33.3 million from $29.7 million in the prior year.

For fiscal 2014, the company still expects earnings of $2.65 to $2.80 per share and sales of $383 million to $398 million. Analysts expect earnings of $2.76 per share on sales of $386.28 million.

WD-40 stock closed Tuesday at $77.82, up $1.85 or 2.44%, on a volume of 77k shares on the Nasdaq. In after hours, the stock dropped $0.82 or 1.05% at $77.00.