Solid Q3; Sales to Move Higher, But Higher Costs Likely Squeeze Margins

研报英文原文证据摘录

Solid Q3; Sales to Move Higher, But Higher Costs Likely Squeeze Margins

USA | Chemicals

WD-40 EquityJulyResearch9, 2026

TARGET | ESTIMATE CHANGESolid Q3; Sales to Move Higher, But Higher Costs

RATING HOLDLikely Squeeze Margins

PRICE $239.42^

Q3 EPS was $0.77 above consensus and $0.70 above our estimate. Demand will

likely broadly improve despite the macro volatility, but higher input costs should PRICE TARGET | % TO PT $245.00 ($229.00) | +2%

squeeze margins through 1H27 despite the recently announced price hikes. 52W HIGH-LOW $253.24 - $175.38

The company is no longer seeking a sale of the Americas Homecare business. FLOAT (%) | ADV MM (USD) 99.3% | 40.21

Including Americas Homecare, the 2026 EPS estimate is increased ~1% at the MARKET CAP $3.2B

midpoint to $6.05-$6.35, implying Q4 EPS of $1.01-$1.31 (consensus $1.65). TICKER WDFC ^Prior trading day's closing price unless otherwise

noted.

Q3 Review: EPS was $0.70 above our estimate: +$0.48 in Americas; +$0.32 in EMEA; +$0.01 in

Asia; -$0.07 in Corporate; +$0.02 in interest expense; -$0.03 in other income; -0.02 in taxes, and -

FY (Aug) CHANGE TO JEFe JEF vs CONS

$0.01 from share count. 2026 EPS is pegged at $6.05-$6.35. This includes ~$0.20 from Americas

2026 2027 2026 2027

Homecare, but excludes a $1.3m amortization charge.

REV +4% +6% +3% +5%

Sales Outlook Intact: Advance buying was a $3m sales pull forward in Q3 as customers increased EPS +2% +3% +2% +3%

inventories ahead of price increases and amid concerns surrounding Middle East supply disruption.

Regardless, the demand environment is intact despite the volatile geopolitical environment. Growth 2026 ($) Q1A Q2A Q3A Q4 FY

will continue to be driven by market share gains, distribution expansion, growth in e-commerce, EPS 1.29 1.50 2.24 1.07 6.10