WD-40 Co (NASDAQ:WDFC) stock rose 2.11% (As on April 8, 11:27:50 AM UTC-4, Source: Google Finance) after the company reported mixed results for its second fiscal quarter ended February 28, 2025, beating earnings estimates but falling short on revenue. Gross margin improved to 54.6% from 52.4% in the same quarter last year. Operating income grew 11% to $23.3 million. The company reported a significant 92% increase in net income to $29.9 million, largely due to a one-time $11.9 million tax benefit. Total maintenance product sales were $139.3 million, an increase of 6 percent compared to the prior year fiscal quarter. Selling, general, and administrative expenses were $49.0 million, up 9 percent compared to the prior year fiscal quarter. Advertising and sales promotion expenses were $7.4 million, up 10 percent compared to the prior year fiscal quarter. Operating income was $23.3 million, an increase of 11 percent from the prior year fiscal quarter.

Moreover, total net sales in the Americas increased 3 percent in the second quarter compared to the prior year fiscal quarter primarily due to a 4 percent increase in net sales of WD-40® Multi-Use Product. WD-40® Multi-Use Product sales increased most significantly in Latin America, which improved 47 percent compared to the prior year fiscal quarter. Total net sales in EIMEA increased 10 percent in the second quarter compared to the prior year fiscal quarter. Net sales in Asia-Pacific decreased 1 percent in the second quarter compared to the prior year fiscal quarter.

WDFC in the second quarter of FY25 has reported the adjusted earnings per share of $1.32, beating the analysts’ estimates for the adjusted earnings per share of $1.27. The company had reported the adjusted revenue growth of 5 percent to $146.1 million in the second quarter of FY25, missing the analysts’ estimates for revenue of $154.41 billion. The company noted that foreign currency translation negatively impacted net sales by approximately $4.9 million in the quarter. WD-40 also reported double-digit volume growth both in the second quarter and year-to-date, led by the EIMEA region.

For fiscal year 2025, WD-40 expects earnings per share between $5.25 and $5.55, with the midpoint slightly above the analyst consensus of $5.42. The company projects revenue of $600-630 million, with the midpoint just below the $627.1 million consensus estimate. The company experienced slower growth in its Asia-Pacific segment, though they have begun to see recovery in March and expect a strong second half as the company advance through fiscal year 2025.