WD-40's Mixed Bag Of Q2: Revenue Miss, Strategic Moves, Raised EPS Outlook & More
Portfolio Pulse from Lekha Gupta
WD-40 Company (NASDAQ:WDFC) reported a mixed Q2 FY24 with a slight revenue miss at $139.1 million against a consensus of $140.5 million but saw a 7% Y/Y growth across all trade blocs. The company's EPS of $1.14 beat estimates of $1.11, and it announced a dividend of $0.88 per share. WD-40 also bought back shares worth $5.3 million and is focusing on its core products by selling its U.S. and U.K. Homecare and Cleaning Products portfolio. The FY24 EPS outlook was raised to $5.00-$5.30. WDFC shares dropped 1.51% to close at $255.11.

April 10, 2024 | 10:22 am
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NEUTRAL IMPACT
Investors can gain exposure to WD-40 through the Invesco S&P SmallCap Consumer Staples ETF (PSCC), which may see indirect effects from WD-40's Q2 FY24 performance and strategic decisions.
As an ETF that includes WD-40, PSCC could see some indirect impact from WD-40's financial performance and strategic moves, though the effect may be diluted due to the diversified nature of ETF holdings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to WD-40 through the Invesco Dorsey Wright Consumer Staples Momentum ETF (PSL), which may see indirect effects from WD-40's Q2 FY24 performance and strategic decisions.
As an ETF that includes WD-40, PSL could see some indirect impact from WD-40's financial performance and strategic moves, though the effect may be diluted due to the diversified nature of ETF holdings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
WD-40 reported mixed Q2 FY24 results with a slight revenue miss but higher Y/Y growth and a beat on EPS estimates. The company announced a dividend, share buybacks, and strategic moves including selling its Homecare and Cleaning Products portfolio.
Despite the revenue miss, the overall positive earnings report, dividend announcement, and strategic moves to focus on core products could stabilize the stock in the short term. The raised EPS outlook indicates strong future performance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100