WD-40's stock plummeted 9.68% in after-hours trading following the release of its fiscal first-quarter results, which fell short of analyst expectations. The sharp decline reflects investor disappointment as the company reported weaker-than-anticipated earnings and sales.
The maintenance products maker posted Q1 earnings per share of $1.28, missing the FactSet consensus estimate of $1.36 by 5.88%. This also marked a 7.91% decrease from the $1.39 per share reported in the same period last year. Quarterly sales of $154.423 million slightly missed the $155.085 million estimate, though they showed a modest 0.60% year-over-year increase.
Despite the earnings miss, WD-40 reaffirmed its full-year guidance, projecting EPS between $5.75 and $6.15. The company also reported a gross margin improvement to 56.2%, up from 54.8% in the prior year, driven by operational efficiency. However, these positives were overshadowed by the Q1 underperformance.
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