WD-40 Company (NASDAQ:WDFC) stock surges 18.64% (As on July 11, 11:52:08 AM UTC-4, Source: Google Finance) after the company surpasses estimates for both topline and bottom line in the latest quarter. Net income for the third quarter was $18.9 million, an increase of 30 percent from the prior year fiscal quarter. On a non-GAAP constant currency basis, net income would have been $19.5 million for the third quarter and $52.2 million year to date. Gross margin was 50.6 percent in the third quarter compared to 47.7 percent in the prior year fiscal quarter. Advertising and sales promotion expenses were up 27 percent in the third quarter to $7.7 million compared to the prior year fiscal quarter. Selling, general, and administrative expenses were up 14 percent in the third quarter to $38.2 million compared to the prior year fiscal quarter. On a constant currency basis, global sales were up 18 percent in the third quarter and 7 percent year to date.

WDFC in the third quarter of FY 23 has reported the adjusted earnings per share of $1.02, beating the analysts’ estimates for the adjusted earnings per share of 85 cents. The company had reported the adjusted revenue growth of 15 percent to $141.7 million in the third quarter of FY 23, beating the analysts’ estimates for revenue of $138.4 million. Net sales by segment as a percentage of total net sales for the third quarter were as follows: for the Americas, 50 percent; for EMEA, 37 percent; for Asia-Pacific, 13 percent. Net sales in the Americas increased 16 percent in the third quarter due primarily to higher sales of maintenance products in the United States, which increased 21 percent compared to the prior year fiscal quarter. Increased maintenance product sales were driven primarily by the impact of price increases, which was partially offset by slightly lower demand which resulted in decreased sales volume. Net sales in EMEA increased 6 percent in the third quarter primarily due to price increases across all direct and distributor markets implemented over the last twelve months. Net sales in Asia-Pacific increased 42 percent in the third quarter primarily due to higher sales of maintenance products in the Asia distributor markets and China, which increased 151 percent and 39 percent, respectively, compared to the prior year fiscal quarter.

The company target a compound annual growth rate for maintenance product revenue in the mid-to-high single digits on a constant currency basis. Achieving year to date growth of 7 percent in constant currency is in-line with the long-term objectives