WD-40 (NASDAQ: WDFC) reported that the company suffered less-than-expected first-quarter financial results, causing the company’s shares to drop Tuesday.
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The company, which makes cleaning, home care and maintenance products, said late Monday that its revenue for the three months that ended Nov. 30 fell 7 percent to $77.7 million from $83.6 million. Wall Street analysts surveyed by Thomson Reuters on average had estimated of $81.3 million.
WD-40 said foreign currency exchange rates lowered its sales results by $1.8 million.
Multi-purpose maintenance product sales, including WD-40 and 3-in-One, slipped 8 percent to $60.7 million, while sales of all its other brands dipped 4 percent to $17 million.
WD-40's first-quarter earnings performance was better than its sales. It posted profit of $9.4 million, or 56 cents per share, compared with $7.7 million, or 46 cents per share, a year ago. The performance is a 22 percent increase and better than the 51 cents' profit analysts expected. Analysts polled by Thomson Reuters normally exclude one-time items from their estimates.
Total operating expenses declined 5.6 percent, to $25.2 million from $26.7 million, while advertising and promotional expenses dropped 4 percent.
Gross profit increased to $39.9 million from $38.7 million. Gross margin was 51.4 percent for the quarter, up from 46.3 percent in the prior-year period.
WD-40 anticipates a fiscal 2010 profit of $1.80 to $1.95 per share on sales of $298 million to $318 million.
Analysts predict full-year earnings of $1.92 per share on revenue of $305.4 million.
The company's stock dropped 28 cents to $32.22 at Tuesday’s close. Over the past year, the shares have traded in a range of $21.81 to $34.55.
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