Toro Sales, Guidance Affected by 'Extremely Dynamic Environment'

Investopedia
2024-12-19

Key Takeaways

  • Toro reported lower-than-expected sales and guidance as it faced a difficult economic environment.
  • The lawnmower and other outdoor equipment maker's adjusted profit was in line with forecasts, but net income came up short.
  • Toro's full-year outlooks for adjusted EPS and revenue were below analysts' estimates.

The Toro Company (TTC) shares fell Wednesday as the maker of lawnmowers, snowblowers, and other outdoor equipment missed sales estimates and gave weak guidance as it faced a tough economic climate.

Toro reported fourth-quarter revenue increased 9% to $1.08 billion, while analysts surveyed by Visible Alpha were looking for $1.09 billion. Adjusted earnings per share (EPS) of $0.95 aligned with estimates but net income of $89.9 million was below forecasts. 

Professional segment sales were up 10% to $913.9 million, primarily because of higher shipments of golf and grounds products and underground construction equipment, along with higher prices. Sales at its Residential division rose 4.5% to $155.1 million on demand for lawn care products through its mass channel.

Chief Executive Officer (CEO) Richard Olsen explained that the company faced "an extremely dynamic environment" during the year. Olsen added that in the fourth quarter Toro "enhanced productivity and carefully controlled expenses," which helped offset a higher-than-anticipated proportion of lower-margin products in net sales.

Toro Sees Fiscal 2025 Adjusted EPS, Revenue Below Analysts' Expectations

For fiscal 2025, the company sees adjusted EPS from $4.25 to $4.40, with revenue flat to up 1.0%. Analysts expected adjusted EPS of $4.59 and revenue higher by 4.1%.    

Toro shares recently slipped 2% and are down about 13% year-to-date.

TradingView

Do you have a news tip for Investopedia reporters? Please email us at
tips@investopedia.com

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

熱議股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10