The Key Takeaways
- Toro announced lower sales than anticipated and lowered its forecasts as it was facing a challenging 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.
Toro Company shares (TTC), a maker of outdoor products such as lawnmowers and snowblowers fell on Wednesday after the company missed its sales forecasts and provided weak guidance in a difficult economic environment.
Visible Alpha surveyed analysts and found that Toro’s fourth-quarter revenues increased by 9%, to $1.08 Billion. Analysts surveyed expected $1.09 Billion. The adjusted earnings per share of $0.95 was in line with expectations, but the net income of $89,9 million fell short of forecasts.
Sales in the Professional Segment were up by 10%, to $913.9 million. This was mainly due to higher sales of underground construction and golf equipment as well as higher prices. The Residential Division saw sales rise 4.5%, to $155.1 Million. This was due to the demand for lawn products in its mass channels.
Richard Olsen, the Chief Executive Officer of the Company (CEO), explained to employees that there were many challenges facing “an extremely dynamic environment” During the year. Olsen also added that Toro’s fourth quarter was a record-breaking period. “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
In fiscal 2025 the company anticipates that adjusted EPS will range from $4.25-$4.40 with revenues flat to 1.0% higher. Analysts had predicted adjusted EPS at $4.59, and revenue to increase by 4.1%.
Toro shares are currently down 13% for the year.
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