WD-40 (WDFC) greases its own wheels

Victoria Erhart — Thu, 03 Jul 2008 13:22:00 EST

Filed under: Earnings Reports, Good news, Consumer Experience, Competitive Strategy

The lubricant with thousands of uses, WD-40 is found in just about every toolbox in the nation. WD-40 Company (NASDAQ: WDFC) released 3Q 2008 results that show solid sales figure increases in all divisions around the globe. Net sales for the quarter increased 5.8% to $82 million. Net income was up by the same amount to $8 million. EPS increased 10% to $0.49. The story is much the same for YTD figures. WD-40 posted these numbers despite a tremendous run-up in the prices of raw materials. Senior management is being conservative and has, therefore, reduced FY2008 guidance. The company now expects net sales to increase 4-8% to $320-$332 million. Net income will be in the $30 to $31 million range and EPS in the $1.78-$1.85 range.

The company is rolling out its Smart Straw initiative globally. No more looking for the stupid little red straw that always got separated from the spray can. Now all aerosol cans of WD-40 have a built-in applicator. What a relief.

WD-40 also owns 3-in1 oil, Lava soap, X-14 and Carpet Fresh. None of these products are environmentally friendly by any stretch of the imagination. To counteract the perception that its products are not environmentally sensitive, WD-40 has launched a new product line, Spot Shot, comprised of an environmentally safe carpet stain remover and pet odor remover.

The stock is trading at just over $27, near its 52-week low of $26.50, and pays $0.25 in quarterly dividend.

WD-40 (WDFC) greases its own wheels originally appeared on BloggingStocks on Thu, 03 Jul 2008 13:22:00 EST. Please see our terms for use of feeds.

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WD-40 Company: Much more than just lubricants

Larry Schutts — Thu, 12 Apr 2007 15:20:00 EST

Filed under: Earnings Reports, Clorox Co (CLX), Technical Analysis

Brand supremacy is often said to be the Holy Grail of business. There is a San Diego firm that ranks among the leaders in the quest for that absolute. The company's product list is one of the best recognized anywhere.

WD-40 Company (NASDAQ: WDFC) produces lubricants, hand cleaners, and household cleaners. Products include lubricants WD-40 and 3-IN-ONE Oil, the Lava and Solvol brands of heavy-duty hand cleaners, 2000 Flushes toilet bowl cleaner, X-14 bathroom cleaners, Carpet Fresh rug and room deodorizers, and Spot Shot carpet stain remover. The firm attempts to build brand equities that are first or second choice in their respective categories, by acquiring and developing products that deliver a unique value to end users and that can be distributed across multiple trade channels. Key competitors are Clorox (NYSE: CLX), Church & Dwight (NYSE: CHD) and S.C. Johnson.

The company pleased investors last week, when it announced Q2 EPS of 52 cents and revenues of $79.3 million. Analysts had been expecting 46 cents and $78.3 million. Management also guided FY07 EPS to $1.70-1.85 ($1.76 consensus) and FY07 revenues to $307-324 million ($313.14M consensus). The board authorized an open-ended buy back of company shares up to $35 million, over the next 12 months.

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WD-40 Company: Much more than just lubricants originally appeared on BloggingStocks on Thu, 12 Apr 2007 15:20:00 EST. Please see our terms for use of feeds.

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