Although WD-40 Company (NASDAQ: WDFC) reported a 1.2% drop in fiscal second quarter profit owing to higher expenses, shares rallied in afterhours trading as earnings per share comfortably edged past analysts’ expectation, thanks to strong sales in international markets. The San Diego based Company also provided upbeat outlook on the current fiscal year.
WD-40, known for its range of products which include Carpet fresh deodorizer, cleaning products like 2000 toilet-bowl cleaner and namesake multi-function lubricant, said on Thursday that it is considering strategic alternatives for its household products segment.
The Company, in order to counterbalance weaker demand in the U.S., is also trying to gain traction in international markets like China which in turn helped boosting top line. Besides, improved demand from Europe also helped the company to drive up the revenue in the recently concluded quarter.
“We are pleased that we have turned the corner in many of our European markets and have met our expectations in these markets despite continuing economic turmoil,” said Garry Ridge, WD-40′s chief executive in earnings call to analysts.
For the fiscal second quarter, WD-40, reported net income of $10.46 million or 66 cents a share compared to a profit of $10.58 million or 65 cents a share, in the same quarter of last fiscal. Analysts’ consensus estimate was for earnings of 56 cents a share, according to a data compiled by Thomson Reuters.
Sales during the period edged up 1% to $86.71 million from $86 million, falling short of Street’s consensus forecast of $87.37 million.
Operating expenses rose to $29.69 million from $27.43 million, in the year-earlier quarter.
For the fiscal 2013, the Company expects earnings to come in the range of $36.5 million to $38 million or $2.32 to $2.42 a share up from its initial earnings guidance of $2.31 a share to $2.40 share. Revenue is anticipated to come between $356 million and $370 million. Analysts’ consensus forecast was for earnings of $2.37 a share on revenue of $358.17 million.