Everything You Need To Know Ahead Of Earnings

Household products company WD-40 (NASDAQ:WDFC) will be reporting results this Wednesday after market hours. Here’s what investors should know.

WD-40 missed analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $156.9 million, up 1.2% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ revenue estimates.

Is WD-40 a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting WD-40’s revenue to decline 1.3% year on year to $153.9 million, a reversal from the 11.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.82 per share.

WD-40 Total Revenue
WD-40 Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. WD-40 has missed Wall Street’s revenue estimates twice since going public.

Looking at WD-40’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lamb Weston posted flat year-on-year revenue, beating analysts’ expectations by 2.6%, and Conagra reported a revenue decline of 5.8%, topping estimates by 0.7%. Lamb Weston traded up 11.4% following the results while Conagra was also up 5%.

Read our full analysis of Lamb Weston’s results here and Conagra’s results here.

Investors in the consumer staples segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. WD-40 is down 7.1% during the same time and is heading into earnings with an average analyst price target of $277.50 (compared to the current share price of $193.07).

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