WD-40 Company Shares Plunge 8.17% on Missed Revenue Expectations

WD-40 Company (WDFC) shares plummeted 8.17% today, marking the third consecutive day of decline, with a cumulative drop of 12.23% over the past three days. The stock price hit its lowest level since July 2024, experiencing an intraday decline of 9.07%.

WD-40 Company's stock price has been influenced by several key factors. In the first quarter of 2025, the company missed Wall Street's revenue expectations, despite a 5% year-over-year increase in sales to $146.1 million. This shortfall in revenue expectations likely contributed to the recent decline in stock price.

In contrast, the second quarter of 2025 saw strong financial performance. Total net sales reached $146.1 million, a 5% increase year-over-year. Key performance metrics showed significant improvements, including a 6% increase in maintenance product sales, a 220 basis point expansion in gross margin to 54.6%, and a 92% surge in net income to $29.9 million. This surge in net income was largely due to a one-time tax benefit, which may have boosted investor confidence temporarily.

Despite the mixed regional performance, with the EIMEA region seeing 10% growth and the Americas 3% growth, while the Asia-Pacific region experienced a slight decline, the WD-40 Specialist product line showed strong momentum with a 10% growth. This positive product performance may have mitigated some of the negative sentiment from the regional declines.

Additionally, the company raised its fiscal 2025 guidance, projecting net sales between $600 million and $630 million and EPS between $5.25 and $5.55. This revised guidance indicates management's confidence in continued strength and growth, which could potentially stabilize or even boost investor sentiment in the long term.