WD-40 shares reach new high on 4Q profit surprise

NEW YORK (AP) — Shares of consumer products maker WD-40 Co. briefly rose to a 52-week high on Thursday, a day after reporting its fourth-quarter profit soared, beating analyst expectations.

Shares climbed 78 cents, or 2.5 percent, to $32.61 in afternoon trading. Earlier, shares had reached as high as $33.90, a record high for the past year.

After the markets closed Wednesday, WD-40 said its quarterly profit rose 64 percent, helped by lower costs and slightly higher sales. Net income rose to $7.6 million, or 46 cents per share, for the three months ended Aug. 31. Analysts surveyed by Thomson Reuters, on average, expected a profit of 40 cents per share. Those estimates generally exclude one-time items.

Janney Capital Markets analyst Liam Burke said shares of the company are fairly valued, and did not recommend investors snap up the stock, despite its solid growth potential. He maintained a "Neutral" rating.

Looking ahead, the company said it expects fiscal year 2010 earnings of $1.80 to $1.95 per share. Burke raised his 2010 profit estimate to $1.86 per share, from $1.60 per share and introduced a 2011 earnings estimate of $2.05 per share. Analysts expect 2010 and 2011 earnings of $1.90 per shares and $2.11 per share, on average.

"Thecompany continues to face challenges related to an uncertain global economy but is taking advantage of growth opportunities in its multipurpose maintenance product lines while stabilizing its home care and cleaning business," Burke said. He applauded WD-40's proactive cost cutting, popular brand extension and investments in higher-growth markets to help stabilize revenue and earnings.