WD-40 Company Reports Fourth Quarter and Fiscal Year 2024 Financial Results
WD-40 Company (NASDAQ:WDFC) released its financial results for the fourth quarter and fiscal year ending August 31, 2024. The company, known for its maintenance and cleaning products, demonstrated substantial growth and strategic initiatives to bolster its market position.
Key Financial Metrics (in USD millions, except EPS)
| Metric | Q4 2024 | Q4 2023 | YoY Growth | Consensus | FY 2024 | FY 2023 | YoY Growth | Consensus |
|---|---|---|---|---|---|---|---|---|
| Total Revenue | $156.0 | $140.5 | 11% | $149.19 | $590.6 | $536.0 | 10% | $583.38 |
| Earnings Per Share (EPS) | $1.23 | $1.21 | 1.65% | $1.34 | $5.11 | $4.83 | 5.79% | N/A |
Interpretation: WD-40 Company posted strong revenue growth of 11% year-over-year for the fourth quarter, surpassing consensus estimates. Total revenue for fiscal year 2024 also rose by 10% compared to the prior year. However, EPS for the current quarter showed a modest increase of 1.65%, falling short of analyst expectations. Despite the robust revenue figures, the earnings per share missed the consensus estimate by $0.11.
Segment Revenue Performance (In thousands USD)
| Segment | Q4 2024 Sales | Q4 2023 Sales | YoY Growth |
|---|---|---|---|
| Americas | $79.56 | $75.11 | 6% |
| EIMEA | $57.72 | $49.82 | 16% |
| Asia-Pacific | $18.72 | $15.48 | 21% |
Segment Performance Interpretation: The Americas, representing 51% of total sales, experienced growth driven by increased sales of WD-40 Multi-Use Product, particularly in Latin America. EIMEA saw a notable 16% increase in sales, primarily due to strong performance in the distributor markets and selective regions such as France and DACH. The Asia-Pacific region led with the highest growth rate of 21%, largely from successful brand-building efforts.
Key Developments and Operational Highlights:
- WD-40 Company's gross margin for FY 2024 increased to 53.4% from 51.0% in FY 2023.
- The company declared its intention to divest its homecare and cleaning product portfolio, aiming to focus resources on its core maintenance product line.
- A share repurchase plan for up to $50 million through August 2025 was initiated.
- Introduction of the strategic mantra 'few things, many places, bigger impact' to enhance global efficiencies and returns on investment.
Executive Comments:
Steve Brass, President and CEO, highlighted the company's strong performance across all regions and the effectiveness of its Four-by-Four Strategic Framework. He emphasized the company's commitment to geographic expansion, digital commerce, and divestiture of non-core portfolios to drive higher growth in maintenance products.
Dividend and Share Repurchase Program:
The company announced a quarterly dividend of $0.88 per share payable on October 31, 2024. Under its repurchase plan, WD-40 has acquired $8.1 million in shares as part of its $50 million authorization.
Forward Guidance:
For fiscal year 2025, WD-40 Company projects revenue growth between 6 to 11% on a pro forma basis, excluding expected divestitures. EPS is anticipated to range between $5.20 and $5.45, reflecting growth of 9 to 14%.
Stock Price Movement:
Following the earnings announcement, WD-40's stock experienced a decline of approximately 3.23%, indicating a potential market reaction to the EPS shortfall compared to consensus estimates.
The results underscore WD-40 Company's stable growth trajectory and strategic focus on bolstering its core business, while market adjustments reflect investor response to missed earnings expectations.
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