WD-40 Company (NASDAQ:WDFC) stock rose 0.67% (As on January 10, 11:11:47 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the first quarter of FY 23. Net income for the first quarter was $14.0 million, a decrease of 25 percent from the prior year fiscal quarter. Gross margin percentage was 51.4 percent compared to 50.8 percent in the prior year fiscal quarter. Further, Net sales by segment as a percent of total net sales for the first quarter were as follows: for the Americas, 46 percent; for EMEA, 33 percent; for Asia-Pacific, 21 percent. Net sales in the Americas increased 3 percent in the first quarter due primarily to higher sales of maintenance products in the United States, which increased 15 percent compared to the prior year fiscal quarter. Net sales in EMEA decreased 29 percent in the first quarter due to lower sales of maintenance products in both the EMEA direct and distributor markets, which decreased 22 percent and 43 percent, respectively. Net sales in Asia-Pacific increased 25 percent in the first quarter due to higher sales of maintenance products in the Asia-Pacific distributor markets and China, which increased 41 percent and 22 percent, respectively.

WDFC in the first quarter of FY 23 has reported the adjusted earnings per share of $1.02, missing the analysts’ estimates for the adjusted earnings per share of $1.09. The company had reported 7 percent fall in the adjusted revenue to $124.9 million in the first quarter of FY 23, missing the analysts’ estimates for revenue of $141.5 million.

Additionally, the company has declared on December 13, 2022, a quarterly dividend of $0.83 per share reflecting an increase of more than 6 percent compared to the previous quarter’s dividend.  On October 12, 2021, the Company’s board of directors approved a share buy-back plan that became effective on November 1, 2021.

For fiscal year 2023, the net sales growth is projected to be between 5 and 10 percent with net sales expected to be between $545 million and $570 million, gross margin percentage for the full year is expected to be between 51 and 53 percent, advertising and promotion investments are projected to be between 5.0 and 6.0 percent of net sales, the provision for income tax is expected to be around 22 percent, net income is projected to be between $69.0 million and $71.0 million and diluted earnings per share is expected to be between $5.09 and $5.24