The Toro Company (NYSE:TTC) reported mixed results for its fiscal first quarter of 2025, with adjusted earnings per share outperforming expectations but revenue falling short due to challenges in its Residential segment.

For the quarter ended January 31, 2025, Toro reported adjusted earnings of $0.65 per share, surpassing analysts' consensus estimate of $0.63 per share. However, the company's revenue of $995 million came in slightly below Wall Street's expectations of $1 billion.

The Professional segment, which accounts for over 75% of Toro's total revenue, posted a strong performance with earnings rising 12.8% year-over-year to $127.2 million. This growth was driven by higher shipments of golf and grounds products, as well as increased sales of zero-turn mowers. The segment's earnings margin also improved to 16.5%, up from 14.9% in the prior-year quarter.

On the other hand, the Residential segment faced challenges, with net sales declining 8% to $221 million. Lower shipments of snow products, the divestiture of Pope Products, and higher sales promotions weighed on the segment's performance. Residential segment earnings fell to $17.2 million, primarily due to increased material and manufacturing costs.

Despite the mixed results, Toro maintained its full-year fiscal 2025 guidance, expecting net sales growth in the range of 0% to 1% and adjusted earnings per share between $4.25 and $4.40. The company remains optimistic about continued strong demand and stable supply, barring any unexpected changes in weather patterns or economic conditions.