Seeking Alpha
Profile| Send Message| ()  

by David Gibbs

Earnings Estimates (High/Mean/Low): $0.45/$0.423/$0.39

San Diego, CA based WD-40 Company (NASDAQ: WDFC) is a global consumer product company dedicated to delivering unique, high-value and easy-to-use solutions for a wide variety of maintenance needs of “on-the-job” users. The company markets three multi-purpose maintenance product brands, including its namesake WD-40 brand, and eight homecare and cleaning product brands.

WDFC markets its products in more than 160 countries worldwide and recorded sales of $292 million in fiscal 2009. The company is expected to release Q3 earnings on Wednesday, July 7th after the bell. A conference call is set to follow at 5 PM EST.

WDFC has beaten estimates in seven of the past eleven quarters and five of the last six. They reported $0.64 last Q and $0.41 in Q3 last year.

WD-40, an iconic American brand, has done a good job of expanding outside of the country in recent years. CEO Garry Ridge recently noted that, “there’s a lot [of] squeaks in China and a lot of rust in Russia. We’re the boys and girls to look after that. We have to take off our tunnel vision if we want to be global.”

Shares of WDFC closed out last week at $34.17, about 6% off recent highs. Friday’s close marked the first time since mid-May that the company was able to close above its 50-day moving average. Given the nature of the products WDFC manufactures along with its 0.7 Beta and 3% yield, the company can likely add a measure of stability to your portfolio during uncertain times, and as such, is worth taking a look at following Wednesday’s report.

Click to enlarge

Disclosure: No holdings in WDFC.

Source: Earnings Preview: WD-40 Company