WD-40 Shares Plunge 12.63% Amid Mixed Earnings

WD-40(WDFC) shares fell 0.45% today, marking the fourth consecutive day of decline, with a total drop of 12.63% over the past four days. The share price hit its lowest level since July 2024, with an intraday decline of 3.35%.

WD-40's stock price has been influenced by several key factors in recent months. The company missed Wall Street's revenue expectations for the first quarter of 2025, despite a 5% increase in sales to $146.1 million. This shortfall impacted investor sentiment, contributing to the stock's decline.

In the second quarter of fiscal 2025, WD-40 reported mixed results. While the company showed improved profitability and increased total sales, the stock price dipped due to the mixed nature of the results. This volatility reflects the market's sensitivity to the company's performance against expectations.

Despite the mixed results, WD-40's Q2 2025 financial performance was strong. The company reported a 5% year-over-year increase in net sales, improved its gross margin from 52.4% to 54.6%, and significantly increased net income by 92%. This strong performance was aided by a one-time tax benefit, highlighting the company's operational efficiency and strategic initiatives.

Management's decision to raise its fiscal 2025 guidance further bolstered investor confidence. The company projected net sales between $600-630 million and EPS between $5.25-$5.55, reflecting optimism in its continued strength and growth prospects. This upward revision in guidance underscores the company's positive outlook and strategic direction.

Regionally, WD-40's performance varied. The EIMEA region showed strong growth with a 10% increase, and maintenance product sales rose by 6%, indicating solid underlying demand. However, the Asia-Pacific region experienced a slight decline, with signs of recovery appearing in March. This regional variance highlights the company's ability to navigate different market conditions and adapt its strategies accordingly.