WD-40 Company (NASDAQ:WDFC) stock fell 0.034% (As on April 7, 7:59:58 PM UTC-4, Source: Google Finance) after the company topped Wall Street estimates for the quarter but its earnings forecast for the year didn’t. The company reported fiscal second-quarter net income of $16.5 million, compared with $19.5 million, in the year-ago period, a decrease of 15 percent. Gross margin percentage was 50.8 percent in the second quarter, compared to 50.4 percent in the prior year fiscal quarter. Selling, general and administrative expenses were up 8 percent in the second quarter to $37.7 million compared to the prior year fiscal quarter. Advertising and sales promotion expenses were up 7 percent in the second quarter to $6.0 million compared to the prior year fiscal quarter.
Moreover, in the second fiscal quarter, while the company saw double digit sales growth in the Americas segment which has already moved through price-increase related disruptions. The EMEA and Asia-Pacific segments reported sales that were softer than the company would like to see. The disruptions the company have been experiencing in EMEA are due primarily to recent price-increase actions coupled with the loss of sales in Russia and Belarus. In the Asia-Pacific segment, the company experienced some weaker economic conditions and pricing disruptions in the distributor markets. However, the company is expecting a strong comeback in both EMEA and Asia-Pacific in the second half of the fiscal year. Net sales by segment as a percent of total net sales for the second quarter were as follows: for the Americas, 48 percent; for EMEA, 36 percent; for Asia-Pacific, 16 percent.
WDFC in the second quarter of FY 23 has reported the adjusted earnings per share of $1.21, beating the analysts’ estimates for the adjusted earnings per share of $1.15, according to analysts surveyed by FactSet. The company had reported the adjusted revenue of $130.2 million in the second quarter of FY 23, beating the analysts’ estimates for revenue of $125.8 million. On a constant currency basis, total net sales would have been $135.7 million for the second quarter and $270.1 million year-to-date.
Additionally, the company declared on March 21, 2023, a regular quarterly dividend of $0.83 per share payable on April 28, 2023 to stockholders of record at the close of business on April 14, 2023.
The company forecast full-year earnings to be in the range of $4.80 to $5 a share on revenue expected to be in the range of $535 million to $560 million. Analysts, on the other hand, expect full-year earnings of $5.19 a share on revenue of $545.5 million.