Toro Company (TTC) surges as earnings, revenue top consensus expectations

Toro Company (NYSE: TTC) shares surged Wednesday after the company reported earnings for its latest quarter, topping consensus expectations.

The outdoor equipment manufacturer reported Q4 earnings of $0.71, $0.15 better than the analyst estimate of $0.56, while revenue for the quarter came in at $983.2 million versus the consensus estimate of $995.65 million.

The stock is up more than 10% at the time of writing, trading above the $98 per share mark.

For the full-year, net sales came in at $4.55 billion, compared to $4.51 billion in fiscal 2022, while its full-year adjusted EPS was $4.21, compared to $4.20 in fiscal 2022.

"We delivered full-year net sales and adjusted diluted earnings per share growth for fiscal 2023 in an exceptionally dynamic environment, a testament to the strength of our portfolio and our talented team of employees and channel partners," said Richard Olson, the company's chairman and chief executive officer.

The company noted that demand for its products was robust across much of its professional segment this year, with notable strength in underground and specialty construction, and golf and grounds businesses.

However, there was a reduction in homeowner demand and an acceleration of channel destocking for residential and professional segment lawn care solutions, which was driven by a combination of weather and macro factors.

"We exceeded our expectation for fourth-quarter adjusted diluted EPS, a result of swift actions to align production and costs with current conditions in our various markets," added Olson.

Looking ahead, Toro Company sees FY2024 earnings per share between $4.25 and $4.35, versus the consensus of $4.31.

By Sam Boughedda

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