Earning Preview ｜WD-40 Q1 revenue expected to increase by 05.19%, institutional views lean constructive
Earnings Agent01-01
Abstract
WD-40 Company will report fiscal Q1 2026 results on January 08, 2026 Post Market; this preview summarizes consensus projections for revenue, margins, net profit, and adjusted EPS alongside segment dynamics and majority analyst views.
Market Forecast
Based on the company’s fiscal cadence and available projections, revenue for the current quarter is estimated at USD 155,085,000.00, implying an estimated year-over-year increase of 05.19%, with estimated EBIT of USD 24,600,000.00 (+06.03% YoY) and estimated adjusted EPS of USD 1.45 (+12.52% YoY). Forecast margin color points to a steady gross profit margin environment and resilient net profitability; highlights indicate maintenance products continuing to anchor revenue. The most promising segment remains maintenance products, supported by broad channel demand; segment revenue in the last reported quarter was USD 590,966,000.00, with sustained growth momentum suggested by projections.
Last Quarter Review
The previous quarter delivered revenue of USD 163,471,000.00, a gross profit margin of 54.71%, GAAP net profit attributable to the parent company of USD 21,241,000.00, a net profit margin of 12.99%, and adjusted EPS of USD 1.56, with year-over-year adjusted EPS growth of 26.83%. A key highlight was EBIT of USD 28,026,000.00, which exceeded prior estimates by USD 5,226,000.00. Main business highlights reflected maintenance products revenue of USD 590,966,000.00 and home care and cleaning products revenue of USD 29,019,000.00, underscoring the maintenance portfolio’s dominant contribution.
Current Quarter Outlook
Maintenance Products
Maintenance products remain the company’s primary revenue driver this quarter. With historical gross margin resilience near 54.71% and a net margin of 12.99% in the previous quarter, the category’s price discipline and mix lend stability to earnings. Forecast revenue of USD 155,085,000.00 for the company suggests maintenance demand is tracking ahead of last year’s comparable period, consistent with an estimated adjusted EPS of USD 1.45. Mix-shift toward professional and industrial channels can support EBIT expansion, aligning with an estimated USD 24,600,000.00 EBIT and positive year-over-year growth of 06.03% in the quarter. The segment’s branded moat and inventory normalization among distributors are expected to restrain volatility, allowing margins to hold near historical ranges.
Most Promising Business
The most promising business continues to be maintenance products, given its scale and margin characteristics. The last reported quarter showed maintenance revenue at USD 590,966,000.00, and this category is positioned to capture incremental demand from retail and commercial accounts. Year-over-year momentum is corroborated by the company’s forecast of 05.19% revenue growth for the current quarter and 12.52% growth in adjusted EPS, indicating mix and pricing benefits. This quarter’s narrative hinges on effective channel execution and product availability, which, in tandem with better freight and input-cost trends, should support EBIT growth above revenue growth. The category’s breadth across geographies also mitigates single-market risk and helps sustain earnings quality.
Stock Price Drivers This Quarter
Stock performance this quarter will likely be influenced by revenue execution against the USD 155,085,000.00 estimate, margin stability relative to the 54.71% gross margin baseline, and the translation of top-line growth into EPS of USD 1.45. Upside catalysts include outperformance on EBIT relative to the USD 24,600,000.00 forecast and any upside in adjusted EPS versus consensus. Conversely, any slippage in gross margin due to mix or input costs would pressure the net margin, which previously stood at 12.99%. The company’s pricing strategy and promotion cadence will be closely watched, as they affect the balance between volume and margin. Investors will also monitor inventory positions in key channels, with efficient sell-through having the potential to compress working capital needs and support cash generation.
Analyst Opinions
Analyst and institutional previews in the recent period tilt constructive, forming the majority view that WD-40 Company’s fiscal Q1 2026 results will modestly exceed year-ago levels and align near consensus on margins. Commentary centers on the expected revenue of USD 155,085,000.00 (+05.19% YoY), supported by mid-single-digit growth and disciplined price realization. Expectations for EBIT at USD 24,600,000.00 (+06.03% YoY) and adjusted EPS at USD 1.45 (+12.52% YoY) reflect confidence in operational efficiency and mix. The majority view emphasizes the visibility offered by maintenance products, suggesting that stable input costs and effective channel management could sustain gross margins near historical levels and maintain net profitability. In summary, the prevailing stance is bullish, anticipating that the company will deliver revenue growth and margin steadiness consistent with forecast ranges, with the maintenance portfolio anchoring performance while leaving room for modest upside if sell-through and cost trends remain favorable.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
