WD-40 Profit Tops Estimate; Stock Up - Update

(RTTNews) - WD-40 Co. (WDFC) Monday reported a better-than-expected increase in third-quarter profit, led by better gross margin as well as strong demand in the U.S. and Europe for its maintenance products. The company also raised its earnings outlook for fiscal year 2013, but left its revenue expectations unchanged.

Shares of WD-40 gained the most in a year, surging about 8 percent in after-hours trade.

The San Diego-based company posted quarterly net income of $10.3 million or $0.66 per share, up from $9.1 million or $0.57 per share last year.

Analysts polled by Thomson Reuters estimated earnings of $0.56 per share for the quarter.

Sales for the quarter grew 7 percent to $93 million from $87 million a year ago, while analysts estimated $89.45 million.

Multipurpose maintenance products sales climbed 12 percent from last year. Homecare and cleaning products sales declined 18 percent, with indications sales becoming a smaller part of the business.

Among regions, Americas and Europe each gained 8 percent, while Asia Pacific was flat. In the long term, the company sees growth in Asia, especially China.

Results were also aided by gross margin that improved to 51.3 percent from 49.5 percent last year.

For fiscal year 2013, the company now expect earnings in the range of $2.40 to $2.48 per share, up from its prior range of $2.32 to $2.42 per share. Sales are still estimated in the range of $356 million to $370 million.

Analysts currently estimate earnings of $2.39 per share on sales of $359.14 million.

Shares of the company closed Thursday at $57.50, down 0.48%, on a volume of 81 thousand shares. In after hours, the stock gained $4.50 or 7.83%, at $62.00.