- Toro’s third-quarter adjusted earnings per share (EPS) beat estimates, coming in at $1.24 compared to the expected $1.22 and previous year’s $1.18.
- Net sales were $1.13 billion, a decline of 2.2% year-over-year, missing the forecast of $1.16 billion.
- Professional segment net sales reached $930.8 million, a 5.7% increase year-over-year, exceeding the estimated $930.7 million.
- Residential segment net sales were $192.8 million, down 28% compared to last year, falling short of the estimated $219 million.
- Reported EPS dropped to 54 cents, down from $1.14 year-over-year.
- Adjusted operating income was $154.0 million, a decrease of 3.1% year-over-year, and below the estimated $158.3 million.
- For fiscal year 2025, management forecasts that total company net sales and adjusted diluted EPS will be at the lower end of prior guidance ranges: net sales flat to down 3%, and adjusted diluted EPS about $4.15.
- The company remains optimistic due to strong performance in underground construction and golf and grounds services, alongside savings from the AMP productivity program, which helped exceed adjusted earnings expectations despite challenges in the Residential segment.
- Broker recommendations: 3 buys, 2 holds, and 0 sells.
A look at Toro Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
When looking at the long-term outlook for Toro Co using the Smartkarma Smart Scores, the company seems to be on a positive trajectory. With strong momentum scoring a 4, it indicates that Toro Co is experiencing good price performance and market trends. Additionally, the company’s dividend, growth, and resilience scores all sit at a solid 3, showcasing stability and potential for growth. However, the value score is a bit lower at 2, suggesting that the stock may not be undervalued compared to its peers.
The Toro Company, known for designing, manufacturing, and marketing turf equipment globally, seems to be well-positioned for the future. With a diverse product line that includes professional turf maintenance equipment, irrigation systems, landscaping tools, and residential yard products, Toro Co has established a strong presence in the industry. The balanced Smartkarma Smart Scores indicate that while there may be room for improvement in certain areas like value, the company’s overall outlook appears promising.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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