Household products company WD-40 (NASDAQ:WDFC) missed Wall Street’s revenue expectations in Q1 CY2025, but sales rose 5% year on year to $146.1 million. The company’s full-year revenue guidance of $615 million at the midpoint came in 1.9% below analysts’ estimates. Its GAAP profit of $2.19 per share was 54.2% above analysts’ consensus estimates.
WD-40 has followed the market’s trajectory closely. The stock is down 6.2% to $241.80 per share over the past six months while the S&P 500 has lost 1.4%. This may have investors wondering how to approach the situation.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution.
While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at household products stocks, starting with Reynolds (NASDAQ:REYN).
Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. The flip side is that they frequently fall behind growth industries when times are good,
and this was the reality over the past six months as the sector’s flat performance trailed the S&P 500’s 16.8% gain.
Household products company WD-40 (NASDAQ:WDFC) announced better-than-expected revenue in Q4 CY2024, with sales up 9.3% year on year to $153.5 million. On the other hand, the company’s full-year revenue guidance of $615 million at the midpoint came in 1.3% below analysts’ estimates. Its GAAP profit of $1.39 per share was 10.3% above analysts’ consensus estimates.
