WD-40 (WDFC) shares rose early Monday as the maker of lubricants and cleaning products reported higher fiscal first-quarter results on an annual basis and reiterated its full-year outlook.

Net income came in at $1.39 per share for the quarter ended Nov. 30, up from $1.28 the year before, the company said Friday. Sales grew 9% year over year to $153.5 million. The stock increased 3.3% in premarket activity.

"In the first quarter, we executed well against our strategic priorities, with strong growth across multiple regions including the US, Latin America, and (Europe, India, the Middle East and Africa)," Chief Executive Steve Brass said in a statement. "These results continue to demonstrate the strength of our business model and reinforce our confidence in achieving our long-term objectives."

By product group, sales of the WD-40 multi-use product advanced 10% year over year to $118.5 million, while WD-40 specialist climbed 14% to $19.2 million. Other maintenance products rose 2% to $7.8 million. Revenue for homecare and cleaning products declined 3% to nearly $8 million, mainly due to lower sales in the US and the UK, according to the company.

Gross margin rose by 100 basis points annually to 54.8% in the quarter, aided by favorable sales mix and the benefit of various supply chain initiatives across the globe, Chief Financial Officer Sara Hyzer said. Total operating expenses rose to almost $59 million from $51.4 million in the prior-year quarter.

During the quarter, the company reclassified its homecare and cleaning business portfolios in the Americas and EIMEA segments to held for sale. In April last year, the company announced plans to sell its US and UK homecare and cleaning products portfolio.

"While there are no certainties on identifying a buyer when going to the market, our expectation is that we will likely complete the divestiture of these brands over the upcoming months," Hyzer said during a Friday earnings call, according to a FactSet transcript.

For fiscal 2025, WD-40 continues to project sales to come in between $600 million and $630 million, after adjusting for foreign-currency headwinds. Two analysts polled by FactSet expect $622.9 million. The company also reaffirmed its EPS guidance range of $5.20 to $5.45, as well as its gross margin forecast of 54% to 55% for the year.

"Unanticipated inflationary headwinds and other unforeseen events may affect our view of fiscal year 2025," Hyzer said on the call. The company's sales and EPS guidance could be positively impacted by about $23 million and $0.33, respectively, on an annual basis if it isn't able to divest its assets held for sale, Hyzer told analysts.