Toro Earnings: Here’s Why Investors are Ambivalent Now

Toro Co. (NYSE:TTC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Toro Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1.49% to $0.68 in the quarter versus EPS of $0.67 in the year-earlier quarter.

Revenue: Rose 1.15% to $509.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Toro Co. reported adjusted EPS income of $0.68 per share. By that measure, the company beat the mean analyst estimate of $0.57. It beat the average revenue estimate of $505 million.

Quoting Management: “For the quarter, our results were strengthened by a summer growing season with favorable temperatures and precipitation levels as compared to last year’s severe drought conditions,” said Michael J. Hoffman, Toro’s chairman and chief executive officer. “The more desirable weather helped us drive retail sales across most of our businesses and, in particular, our residential business. In addition to realizing sales delayed in the prior quarter by adverse spring weather conditions, our residential business benefited from increased demand for our new and innovative products, including our Timecutter® zero turn radius riding products and our recently introduced line of lithium-ion battery-powered string and hedge trimmers.”

Key Stats (on next page)…

Revenue decreased 27.62% from $704.49 million in the previous quarter. EPS decreased 48.48% from $1.32 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.01 to a loss $0. For the current year, the average estimate has moved down from a profit of $2.46 to a profit of $2.45 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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