WD-40's Earnings Slip Past AI Hype, Lubricates Stock 14% 🛢️

WD-40 Company shares climbed as much as 14.5% in Thursday overnight trading on the Blue Ocean ATS after the household lubricant maker posted a decisive second-quarter beat and lifted its full-year outlook. The stock closed at $272.00 following the report, lifting its market capitalization to $3.02 billion.

Revenue rose 24.3% year-over-year to $195.1 million, comfortably above the $173 million analysts had expected. Profit per share came in at $2.24, well ahead of the $1.57 consensus estimate. Operating margin expanded to 20.7% from 17.4% a year earlier, while free cash flow margin eased to 15% from 21.6%, still ahead of the company's two-year average.

Management raised full-year revenue guidance to $682.5 million at the midpoint, a 6.2% increase from the prior $642.5 million target, and lifted earnings-per-share guidance to $6.20 at the midpoint, also above analyst projections. The company attributed the results to stronger-than-expected demand for its core spray lubricant business.

The beat arrived against a backdrop dominated by AI chip names, with Nvidia and Micron among the stocks that have routinely moved by double digits on single earnings reports this year. WD-40, whose three-year annual sales growth has averaged 8.6%, now faces consensus expectations of roughly 3% growth over the next 12 months. The shares had been lower during the regular Thursday session before the after-hours reaction, and the company will resume trading on Friday, July 10, with the move intact.