Shares of WD-40 (WDFC) - Get Report rose Friday after the maker of the well-known lubricant spray reported fiscal first-quarter earnings that nearly doubled due to unusually high demand for its maintenance and cleaning products.
Shares of the San Diego, Calif. company rose 15.18% to $310.60 during trading on late morning Friday.
WD-40 posted fiscal first quarter earnings of $23.6 million, or $1.72 per share, up 94% from $12.1 million, or 88 cents a share, in the year-ago period. Revenue for the quarter, which ended Nov. 30, rose 26% to $124.6 million from $98.5 million a year ago.
"We offer a variety of maintenance and cleaning products that have been in very high demand during these highly unusual times," said Chairman and Chief Executive Garry Ridge, in a statement.
"Our sales increased 26% compared to the first quarter of last year due primarily to increased demand for our products linked to renovation trends associated with the pandemic. We call this phenomenon 'isolation renovation' and we are experiencing it in nearly all of our direct markets around the world," Ridge added.
Sales for maintenance products linked to renovation trends rose 28% while demand for home care and cleaning products increased 15% year-over-year.
For fiscal year 2021, which ends on Aug. 31, the company expects net sales to be between $435 million and $470 million. WD-40 did not offer any further guidance.
"We are off to a very strong start in fiscal year 2021. However, due to the fluidity with which the pandemic continues to evolve, it is very difficult for us to estimate how the pandemic might impact our sales results for the remainder of the fiscal year. If there is a shift in spending patterns or a global economic downturn in the wake of the pandemic it could adversely impact our financial results," Ridge said.