Toro Sales, Guidance Affected by ‘Extremely Dynamic Environment’

Related Articles

Watch These Bitcoin Price Levels After Inauguration Day Volatility

Trump’s First Round Of Executive Orders Includes No Tariffs

What We Learned From Big Bank Earnings Last Week

Key Takeaways

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

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

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

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

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

Toro Conscious ofs Fiscal 2025 Adjusted EPS, Revenue Below Analysts’ Expectations

For fiscal 2025, the company sees adjusted EPS from $4.25 to $4.40, with gain 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 everywhere 13% year-to-date.