WD-40 3Q Income Rises on Multipurpose Sales

SAN DIEGO (AP) -

WD-40 Co. said Monday its net income rose 12 percent in the fiscal third quarter on greater sales of multipurpose items like its namesake WD-40 spray lubricant.

The company said multipurpose maintenance products like WD-40 3-in-One and Blue Works rose 12 percent to $82.2 million. That more than made up for a decrease in sales of homecare and cleaning products. WD-40 also said its profit margins improved, as advertising and sales-promotion costs decreased. The company raised its profit forecast for the full year, and its shares climbed in aftermarket trading.

WD-40 shares gained $5, or 8.7 percent, to $62.65 in late trading. The stock lost 13 cents, to $57.65, during the regular session. It is up about 22 percent since the start of the year.

The company reported earnings of $10.3 million, or 66 cents per share, for the three months ended May 31. That’s up from $9.1 million, or 57 cents per share, one year ago. Its revenue rose 7 percent, to $93.1 million from $87 million.

A 3 percent reduction in the number of outstanding shares since the year-ago quarter boosted per-share results by 2 cents.

Analysts, on average, were expecting net income of 56 cents per share, according to FactSet.

WD-40 said it now expects to report net income of $2.40 to $2.48 per share for its current fiscal year, which ends in August. The company previously projected income of $2.32 to $2.42 per share.

Analysts expect $2.39 per share, on average.

WD-40 said it should report $356 million to $370 million in revenue for the year.