WD-40 stock rises on Q3 earnings beat
Shares of WD-40 are on the rise after reporting third-quarter results that topped Wall Street estimates and reiterated its fiscal 2023 guidance.
Video Transcript
AKIKO FUJITA: WD-40, this is one I've been watching closely, moving higher this morning. Earnings topped estimates and revenue climbed 15% year over year in the third quarter. The company also reiterating its full year guidance. The shares up by nearly 12% here. The maker of spray lubricants we were talking about, this sort of nostalgically this morning in our morning meeting. When you get a squeaky hinge in the house, you spray WD-40 on it.
So I don't know how much it waxes and wanes with the economy, but I do know that there are pricing dynamics at work here. A Jefferies analyst today talking about that there had been a tailwind from price hikes in the US, and now that's fading but at the same time volumes might be improving to some extent.
BRAD SITH: Yeah. WD-40 really like the Robitussin for anything that's in your household when you're trying to fix things up here. As you were talking about the price increases, can't help but think back to the earnings call. They said while they continue to experience some disruptions linked to the price increases that they put into place over the last 12 months, the impact is beginning to abate and they saw volume-related sales growth this quarter at a consolidated level there. So there you're seeing that also factored into or play into today's performance early in trade as it's up by about 11% right now.
- Yeah, and up about 20% this year by the way, even before today's gains.
