2min read WD-40 Company (NASDAQGS: WDFC), a renowned American consumer goods company known for its iconic WD-40 Multi-Use Product, reported stronger-than-expected earnings for the first quarter of its fiscal year 2024 (Q1 FY2024). The company delivered a GAAP profit of $1.28 per share, exceeding analysts' estimates by 28%. Revenue came in at $140.4 million, a 4.5% beat on estimates of $134.4 million.
The company's full-year revenue guidance of $585 million at the midpoint also came in 1.8% above analysts' estimates. WD-40's revenue growth of 12.4% year-on-year was a significant accomplishment, reflecting the company's robust performance across all three trade blocs.
Steve Brass, WD-40 Company's president and chief executive officer, stated, We have started fiscal year 2024 firing on all cylinders, with significant volume-related sales growth across all three trade blocs.
The household products company, which engages in the manufacturing, distribution, and sale of goods that maintain and enhance the home environment, reported a gross margin of 53.8%, up from 51.4% in the same quarter last year. Free cash flow for the quarter was $26.13 million, a 35.6% decrease from the previous quarter.
Despite the slight dip in free cash flow, WD-40's Q1 FY2024 results were a testament to the company's ability to adapt and thrive in a dynamic market. WD-40 reaffirmed its guidance for fiscal year 2024, anticipating an EPS of $4.78-$5.15 compared to the $5.10 FactSet consensus. The company expects net sales growth to be between 6 and 12% with net sales expected to be between $570 million and $600 million on a non-GAAP constant currency basis.
The company's strong Q1 results and reaffirmed guidance for fiscal year 2024 should be well-received by investors. The stock is up 5.6% after reporting and currently trades at $250 per share.
WD-40's robust performance in Q1 FY2024 highlights the company's resilience and adaptability, particularly in the face of a rapidly evolving market landscape. The company's focus on innovation, quality, and cost efficiency has enabled it to maintain a competitive edge and deliver strong financial results. As the household products sector continues to evolve, WD-40 is well-positioned to capitalize on emerging trends and opportunities, particularly those related to eco-friendly and sustainable offerings.
Overall, WD-40's Q1 FY2024 results were a positive indicator of the company's ability to perform in a challenging market environment. The reaffirmed guidance for fiscal year 2024 suggests that the company is on track to deliver solid financial results in the coming quarters. Investors should closely monitor WD-40's performance in the coming months as the company continues to navigate the evolving household products market.
In conclusion, WD-40's Q1 FY2024 results were a testament to the company's resilience and adaptability, particularly in the face of a rapidly evolving market landscape. With a strong focus on innovation, quality, and cost efficiency, WD-40 is well-positioned to capitalize on emerging trends and opportunities, particularly those related to eco-friendly and sustainable offerings. The reaffirmed guidance for fiscal year 2024 suggests that the company is on track to deliver solid financial results in the coming quarters, making it a company to watch in the household products sector.
