•
Jan 28, 2022

Toro Q1 2022 Earnings Report

Reported solid financial results for the quarter and continued to advance strategic initiatives.

Key Takeaways

The Toro Company reported a 6.8% increase in net sales to $932.7 million for the first quarter of fiscal 2022. Adjusted EPS remained at $0.66, while the company is raising its full-year fiscal 2022 net sales guidance to incorporate the Intimidator Group acquisition, and now expects total net sales growth in the range of 12% to 14%.

First-quarter net sales up 6.8% compared to the same prior year period, to $932.7 million; Professional segment net sales up 3.5%, Residential segment net sales up 17.3%

First-quarter reported and *adjusted diluted EPS of $0.66

Gross margin results improved sequentially from the fourth quarter of fiscal 2021, driven by increased net price realization and enhanced operational performance; comparisons to the same prior-year period were affected by increased inflationary pressures and product availability constraints

Acquisition of the Intimidator Group added the complementary Spartan line of professional zero-turn mowers.

Total Revenue
$933M
Previous year: $873M
+6.8%
EPS
$0.66
Previous year: $0.85
-22.4%
Gross Margin
32.2%
Gross Profit
$300M
Previous year: $315M
-4.6%
Cash and Equivalents
$193M
Previous year: $433M
-55.5%
Free Cash Flow
-$102M
Previous year: $84.5M
-220.6%
Total Assets
$3.25B
Previous year: $2.88B
+13.1%

Toro

Toro

Toro Revenue by Segment

Toro Revenue by Geographic Location

Forward Guidance

The company is raising its full-year fiscal 2022 net sales guidance to incorporate the Intimidator Group acquisition, and now expects total net sales growth in the range of 12% to 14%. In light of the current geopolitical environment, the company is holding its *adjusted EPS guidance in the range of $3.90 to $4.10 per diluted share.

Positive Outlook

  • raising its full-year fiscal 2022 net sales guidance to incorporate the Intimidator Group acquisition
  • expects total net sales growth in the range of 12% to 14%
  • This guidance is based on current visibility
  • reflects expectations for continued strong demand
  • increasing net price realization

Challenges Ahead

  • the recent geopolitical events may create additional challenges
  • holding its *adjusted EPS guidance in the range of $3.90 to $4.10 per diluted share
  • supply chain constraints
  • inflationary pressures continued
  • While we are seeing improvements in our manufacturing performance, as well as positive indicators in our supply chain, we acknowledge that the recent geopolitical events may create additional challenges.

Revenue & Expenses

Visualization of income flow from segment revenue to net income