WD-40 3rd-qtr profit rises, but stock declines

WD-40 3rd-quarter profit rises 13 pct, but shares slip after results disappoint Wall Street

Associated Press

SAN DIEGO (AP) -- WD-40 Co. said Monday its profit grew 13 percent in the fiscal third quarter, but the results fell short of Wall Street expectations, and shares declined in after-hours trading.

The maker of its namesake lubricant and other household products said its profit rose to $9.1 million, or 57 cents per share, for the three-month period ended May 31. In the year-ago quarter, it earned $8.1 million, or 47 cents per share.

The per-share increase partly reflects a 6 percent drop in the number of outstanding shares since last year.

Revenue rose 2 percent, to $87 million from $85.5 million, with sales of multi-purpose maintenance products like WD-40 up 1 percent.

Analysts, on average, expected the company to post a profit of 61 cents per share, on $91.6 million in revenue, according to FactSet.

WD-40 said sales of its home care and cleaning products, which include brands like Carpet Fresh and 2000 Flushes, rose 4 percent. It said revenue increased in Europe and the Asia-Pacific region. U.S. sales decreased compared with the same quarter last year, when the company ran some successful promotions of WD-40.

The company maintained its forecast for full-year profit between $2.33 and $2.45 per share, and said it still believes revenue will be between $353 million and $370 million.

WD-40 said it expects to reach only the low end of that forecast because of the weak European economy.

Analysts, on average, are projecting net income of $2.34 per share, with estimates ranging from $2.25 to $2.39.

Wall Street expects revenue of $356.5 million, on average, with estimates ranging from $353.5 million and $358.9 million.

Shares of WD-40 lost 89 cents to end Monday's regular session at $50.42. Following the release, the stock dropped $1.92, or 3.8 percent, to $48.50 in aftermarket trading.

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