WD-40, the San Diego-based oil lubricant maker, experienced a significant boost in its stock value following its latest quarterly report. The company’s shares surged by 18% to reach $227.86, marking one of its highest percentage increases since October 21, 2020.
Positive Financial Results
In the third quarter ending on May 31, WD-40 reported a substantial increase in net income. The company’s net income rose from $14.5 million (or $1.07 per share) in the previous year to $18.9 million (or $1.38 per share). This growth in earnings contributed to the company’s overall success.
Moreover, WD-40 witnessed a rise in sales, totaling $141.7 million compared to the previous year’s $123.7 million. Despite the positive results, the company acknowledged that foreign currency conversions had a negative impact on sales. They projected that adjusted sales for the quarter would have been $145.6 million if not for these currency fluctuations.
New Share Buyback Program
Acknowledging their impressive financial performance, WD-40 announced that their board of directors approved a new share buyback program. This program, which consists of 50 million shares, will replace the existing program that is nearing expiration.
In conclusion, WD-40’s strong quarterly report has significantly influenced its stock value. With continued financial success and plans for a new share buyback program, the company is positioned for future growth.