What Happened?

Shares of household products company WD-40 (NASDAQ:WDFC) fell 6% in the afternoon session after the company reported underwhelming third-quarter earnings results, with its EPS and full-year earnings forecast missing Wall Street's estimates. On the other hand, revenue came in ahead of expectations. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes.

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What The Market Is Telling Us

WD-40’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. 

The biggest move we wrote about over the last year was 3 months ago when the stock gained 13.1% on the news that the company reported second quarter results that blew past analysts' revenue and EPS expectations. Looking ahead, its full-year revenue guidance came in higher than Wall Street's estimates. 

On the other hand, its full-year earnings forecast was underwhelming, but the other beats more than made up for it. Overall, we think this was a really good quarter that should please shareholders.

WD-40 is up 3.2% since the beginning of the year, but at $249.19 per share, it is still trading 9.7% below its 52-week high of $275.82 from January 2024. Investors who bought $1,000 worth of WD-40’s shares 5 years ago would now be looking at an investment worth $1,383.

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