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Toro
🇺🇸 NYSE:TTC
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•
Jan 31, 2020

Toro Q1 2020 Earnings Report

Toro's first quarter of fiscal year 2020 experienced strong performance, driven by the Charles Machine Works acquisition and growth in the Residential segment.

Key Takeaways

Toro reported a strong start to fiscal 2020, with net sales increasing by 27.3% compared to the same period last year. The integration of Charles Machine Works is progressing well, and the company is on track to achieve synergy goals. The company maintains full-year adjusted EPS guidance range of $3.33 to $3.40 per diluted share, which includes the recently completed Venture Products acquisition

Net sales increased 27.3% compared to the same prior-year period.

Reported diluted EPS up 18.2%, and adjusted diluted EPS up 20.8%, compared to the same prior-year period.

Maintains full-year adjusted EPS guidance range of $3.33 to $3.40 per diluted share, which includes the recently completed Venture Products acquisition.

Residential segment net sales increased 14.3%, driven by shipments of zero turn riding mowers to new mass retail channel outlet.

Total Revenue
$767M
Previous year: $603M
+27.3%
EPS
$0.64
Previous year: $0.51
+25.5%
Gross Margin
37.5%
Previous year: 35.8%
+4.7%
Operating Margin
11.9%
Gross Profit
$288M
Previous year: $216M
+33.6%
Cash and Equivalents
$109M
Previous year: $250M
-56.4%
Free Cash Flow
-$35.1M
Previous year: $11.8M
-397.5%
Total Assets
$2.49B
Previous year: $1.62B
+53.5%

Toro

Toro

Toro Revenue by Segment

Toro Revenue by Geographic Location

Forward Guidance

The company is maintaining its fiscal 2020 guidance, including net sales of about $3.6 billion and adjusted EPS of $3.33 to $3.40 per diluted share. For the second quarter, the company expects adjusted EPS of $1.28 to $1.33 per diluted share. Full year and second quarter 2020 guidance includes the benefit of Venture Products and nominal disruptions from coronavirus. Guidance excludes the benefit of the excess tax deduction for share-based compensation and acquisition and integration-related costs.

Positive Outlook

  • Anticipated healthy demand for core products in golf, grounds, contractor and construction markets
  • Considerable pre-season excitement for new products displayed at recent industry trade shows
  • Realizing productivity and synergy gains from the Charles Machine Works acquisition
  • Seeing some benefit from the current commodity cost environment
  • Expect to see full year gross margin expansion

Challenges Ahead

  • Unfavorable weather conditions may affect performance
  • More significant disruptions from coronavirus may affect performance
  • Factors beyond the company's control may affect performance
  • Maintaining focus on controlling what the company can control
  • Prepared to respond to factors that cannot be controlled

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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