Ahead of the Bell: WD-40
Analyst anticipates WD-40 will be able to continue to grow revenue
NEW YORK (AP) -- WD-40's revenue growth will likely continue through the remainder of its fiscal year even while the company contends with rising raw material costs, according to Janney Capital Markets.
Late Tuesday WD-40 Co. said that its first-quarter net income climbed to $10.9 million, or 69 cents per share, from $6.8 million, or 42 cents per share, in the prior year period. Revenue for the three months ended Nov. 30 climbed 12 percent to $95.3 million.
That easily beat Wall Street expectations on all counts.
"With its global sales and distribution infrastructure and its strength in brand development, WD-40 is in excellent position to grow revenues on a worldwide basis," said Janney analyst Liam Burke in a research note Wednesday.
The company will likely boost business even more by rolling out new products and expanding further into international markets, Burke said.
Burke reaffirmed a "Neutral" rating and $43 price target.
Shares jumped nearly 5 percent in after-hours trading.
