WD-40 Company (NASDAQ:WDFC) stock plunges 11.85% (As on July 8, 11:30:57 AM UTC-4, Source: Google Finance) after the company missed the earnings estimates for the third quarter of FY 22. Net income for the third quarter was $14.5 million, a decrease of 31 percent compared to the prior year fiscal quarter. Net sales in the Americas increased 2 percent in the third quarter due primarily to higher sales of maintenance products in the Canada and Latin America markets which increased 23 percent and 10 percent, respectively. Higher sales of maintenance products in Canada were primarily due to increased promotional activities and a higher level of demand for the products in the industrial channel. Net sales in EMEA decreased 16 percent in the third quarter due primarily to lower sales of maintenance products in both the EMEA direct and distributor markets, which decreased 13 percent and 21 percent, respectively. The decrease in maintenance product sales in the EMEA direct markets was primarily due to the impact of foreign currency exchange rates and reduced demand for our products compared to the prior period. Renovation trends associated with the pandemic resulted in particularly strong demand in the third quarter of fiscal year 2021 in many regions of EMEA. Net sales in Asia-Pacific decreased 28 percent in the third quarter due primarily to lower sales of maintenance products in the Asia-Pacific distributor markets and China, which decreased 56 percent and 25 percent, respectively. Products for our Asia-Pacific distributor and Chinese markets are sourced from a third-party manufacturer located in Shanghai, China. Both markets were negatively impacted by the Company’s inability to ship products due to the severe lockdown measures instituted in Shanghai as a result of a surge in COVID-19 cases in the region. Net sales in Australia increased 4 percent in the third quarter primarily due to the ongoing growth of the base business, increased promotional activities and the impact of price increases.

WDFC in the third quarter of FY 22 has reported the adjusted earnings per share of $1.07, missing the analysts’ estimates for the adjusted earnings per share of $1.27. The company had reported the total net sales for the third quarter of $123.7 million, a decrease of 9 percent compared to the prior year fiscal quarter.

WD-40 expects full-year earnings to be $5.02 to $5.10 per share, with revenue in the range of $519 million to $532 million.