BTN Red Flag Note- WD-40 Company (WDFC)

We identified almost 15 cps of accounting-related benefits in Q1’25

WD-40’s (WDFC) Q1’25 topped the consensus estimate by 13 cps. However, we identified multiple unusual accounting-related benefits that, in our view, artificially inflated the company’s reported EPS, making it seem strong that it truly was.

As earnings season continues to unfold, readers can expect an increase in the number of these Red Flag Notes that highlight earnings quality concerns we uncover in our initial screen of 10-Qs and 10-Ks. While we have done enough follow-up to make sure that unusual accrual movements are not due to benign factors such as acquisitions/divestitures or other issues, please note that these reports do not constitute a comprehensive earnings quality assessment of the company. We may conduct further analysis and publish a more detailed report at a later date.

Let’s get behind WDFC’s numbers…

---