Why WD-40 Stock Sank Today

Core Insights - WD-40 Company's shares declined by 7% following first-quarter earnings that fell short of analysts' expectations, with sales up 1% but earnings per share (EPS) down 8% [1] - Despite the decline, management reaffirmed guidance for 2026, indicating that the company is trading at a high valuation of 32 times next year's earnings, even after a 34% drop since late 2024 [1] Group 1 - The first-quarter results were underwhelming, but there are reasons for optimism, such as the focus on premium products and specialty offerings leading to a 140 basis point increase in gross margins and an 18% rise in specialty sales [2] - CEO Steve Brass attributed the sales softness in Q1 to timing-related factors within the marketing distributor network rather than a decline in end-user demand [4] - WD-40 aims to quadruple its international sales over the long term, targeting annualized revenue growth of 6.5% in the Americas, 9.5% in Europe, and 11.5% in Asia [4][6]