For all the hype over artificial intelligence, chips, and data centers, sometimes it pays to just do the basics really well.
WD-40 stock jumped 24% in early trading Friday after its earnings highlighted the old-fashioned value in having a good product and knowing how to sell it.
Revenue jumped 24% to $195.1 million in the company's fiscal third quarter, driven by sales of its flagship WD-40 Multi-Use product across the world. That was well ahead of the $172.8 million expected by analysts, according to FactSet data.
The sales boost was very much global -- jumping 29% in the Americas, 24% in Asia-Pacific, and 17% in Europe, India, the Middle East and Africa (EIMEA).
Earnings per share of $2.33 also handily beat Wall Street's $1.56 estimate, when the company reported results late Thursday. WD-40's raised full-year EPS guidance of between $6.05 and $6.35, up from $5.75 to $6.15, also beat analysts' view of $6.01.
The company has embraced AI--and perhaps in a way that will prove to be more typical across the economy--deploying it across its supply chain and in its business processes.
New technologies may have played some role, but WD-40's recent success--it had an 11% sales rise in the previous quarter--is a victory for traditional business smarts, too.
The 29% jump in the Americas was driven by expanded distribution, robust e-commerce sales and strong promotional activity, CEO Steven Brass said. He even touted WD-40's limited edition "King of the Hill" can in collaboration with Disney and Home Depot.
We'd all like to think that idea came from man, not machine.
Fittingly, the stock is outperforming the hot U.S. AI names Friday. If the AI trade does end up collapsing, WD-40 could end up getting investors out of a tight spot.
(END) Dow Jones Newswires
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