WD-40 Slips 5% After Weak Q1 Results

(RTTNews) - Shares of WD-40 Co. (WDFC) slipped over 5% in the extended session Thursday after the company reported lower profits and revenues for the first quarter.

WD-40's first-quarter profit dropped to $12.2 million or $0.88 per share, compared with last year's profit of $13.3 million or $0.95 per share.

Revenues fell 3% to $98.6 million from $101.2 million in the year-ago period.

Thomson Reuters does not poll enough analysts for reliable consensus estimates.

Gross margin percentage was 54.3% compared to 55.1% in the prior year fiscal quarter. Selling, general and administrative expenses were down $0.1 million in the first quarter to $32.6 million compared to the prior year fiscal quarter.

"If you follow us quarter to quarter, you may not like our results this quarter," WD-40 Chief Executive Garry Ridge said in a statement. "Our business is one in which fluctuations in the performance of our markets from quarter to quarter are not unusual. That's why we don't issue quarterly guidance and why we frequently caution investors not to follow us too closely quarter to quarter. We are playing the infinite game which is why it's more important for investors to understand that our long-term strategic drivers are performing in-line with our expectations, than it is for them to be concerned about the performance of a particular market or segment in a finite period."

Looking forward to the full year 2020, the company reiterates sales of $436 million to $453 million and earnings of $4.74 to $4.83 per share.

WDFC closed Thursday's trading at $191.81, up $2.05 or 1.08%, on the Nasdaq. The stock, however, slipped $9.79 or 5.10% in the after-hours trade.