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WD-40 Raises Full-Year Outlook as Fiscal Third-Quarter Results Increase; Shares Up Pre-Bell

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WD-40 Raises Full-Year Outlook as Fiscal Third-Quarter Results Increase; Shares Up Pre-Bell

WD-40 (WDFC) shares jumped early Friday as the company upgraded its full-year outlook after opting to retain its Americas homecare and cleaning businesses and reported higher fiscal third-quarter results.

The lubricant and cleaning product maker now expects fiscal 2026 adjusted earnings of $6.05 to $6.35 a share on net sales of $652 million to $667 million, it said late Thursday. The company previously projected EPS at $5.75 to $6.15 on sales of $630 million to $655 million. Four analysts surveyed by FactSet are looking for EPS of $6.07 on sales of $675.1 million.

The revised guidance includes about $12 million in sales and $0.17 in EPS related to the reclassification of the Americas homecare and cleaning brands to assets held for use from assets held for sale, according to a statement.

WD-40 shares were up nearly 15% in premarket activity Friday. So far this year, the stock has jumped 22%.

Last fiscal year, the company announced its intent to sell its homecare and cleaning brands in the Americas and the UK. WD-40 completed the divestiture of the UK homecare and cleaning brands in August.

"After extensive engagement with potential buyers, it became clear that the current macro environment was not conducive to divesting of these brands as a bundle," Chief Financial Officer Sara Hyzer said during an earnings conference call late Thursday, according to a FactSet transcript. "As a result, we are no longer actively marketing these brands for the foreseeable future, and have reclassified these assets as held for use."

For the three months through May, the company reported a 51% annual increase in adjusted EPS to $2.33, while two analysts polled by FactSet expected $1.57. Net sales advanced 24% to $195.1 million, compared with the $172.8 million consensus based on three analysts.

Revenue from maintenance products grew 26% to $189.7 million, while homecare and cleaning sales dropped 17%.

"Our strong performance was driven by double-digit growth across all three trade blocs and continued progress in our Must-Win Battles, delivering solid double-digit year-to-date growth in geographic expansion, WD-40 Specialist, premiumized products, and e-commerce," Chief Executive Steve Brass said in an earnings release.

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