WD-40 slides past Wall Street's fiscal 4Q earnings forecast on favorable tax cuts
The cleaning product company WD-40 Company (NASDAQ:WDFC) zipped past Wall Street’s earnings estimate in the fiscal fourth-quarter helped by corporate tax cuts, but its revenue fell short of expectations.
In the three months ended August 31, the San Diego, California, company reported net income of $21.6 million and diluted earnings per share of $1.54, which exceeded the consensus estimate of $1.54 per share. But its sales of $102.6 million missed the Street’s estimate of $104.55 million.
Its gross margin also dropped in the quarter to 55.2% compared to 56% in the year-ago period.
CFO Jay Rembolt pointed out that tax cuts drove earnings higher in the quarter, as the company recorded a $7.1 million provisional tax adjustment. “Because of this adjustment we substantially exceeded the guidance we issued in July of 2018 for both net income and diluted earnings per share,” he said in a statement.
Rembolt warned, however, that the exceptionally-low tax rate “is not expected to carry into fiscal year 2019.”
The cleaning product company failed to keep a lid on its expenses, with its selling, general and administrative expenses climbing 5% to $29.7 million. Its advertising and sales promotion costs also jumped 23% in the quarter to $6.5 million.
Net sales in the Americas, which accounts for the bulk of business, jumped 2% from the year-ago quarter to $48.75 million while the Asia-Pacific region saw a 36% jump in sales to $17.24 million thanks to booming sales across China.
WD-40 shares slipped slightly to finish at $156.50 on Thursday.
Contact Ellen Kelleher at [email protected]
Story by ProactiveInvestors
Source: https://www.proactiveinvestors.com/companies/news/207424/wd-40-slides-past-wall-street-s-fiscal-4q-earnings-forecast-on-favorable-tax-cuts-207424.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).