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Feb 03, 2023

Toro Q1 2023 Earnings Report

Achieved record results for the first quarter of fiscal 2023, driven by strong professional segment performance and improved profitability.

Key Takeaways

The Toro Company reported record first-quarter net sales of $1.15 billion, a 23% increase year over year. Reported diluted EPS was $1.01, up 53% year over year, and adjusted diluted EPS was $0.98, up 49% year over year. The company reaffirms full-year fiscal 2023 net sales and adjusted diluted EPS guidance.

Record first-quarter net sales of $1.15 billion, up 23% year over year

First-quarter reported diluted EPS of $1.01, up 53% year over year

Record first-quarter *adjusted diluted EPS of $0.98, up 49% year over year

Reaffirms full-year fiscal 2023 net sales and *adjusted diluted EPS guidance

Total Revenue
$1.15B
Previous year: $933M
+23.2%
EPS
$0.98
Previous year: $0.66
+48.5%
Gross Margin
34.5%
Previous year: 32.2%
+7.1%
Operating Margin
11.9%
Gross Profit
$396M
Previous year: $300M
+31.8%
Cash and Equivalents
$174M
Previous year: $193M
-9.8%
Free Cash Flow
-$98.2M
Previous year: -$102M
-3.7%
Total Assets
$3.65B
Previous year: $3.25B
+12.4%

Toro

Toro

Toro Revenue by Segment

Toro Revenue by Geographic Location

Forward Guidance

For fiscal 2023, management continues to expect net sales growth in the range of 7% to 10% and *adjusted diluted EPS in the range of $4.70 to $4.90.

Positive Outlook

  • Exceptional demand and substantial order backlog for products in key professional end markets
  • Expected benefits from pricing and productivity initiatives
  • Anticipate continued improvements in the supply chain
  • Operational execution, position us to increase product availability and enhance profitability
  • Benefit from our innovative product lineup, extensive service and support networks, and well-established market leadership

Challenges Ahead

  • Current macroeconomic environment
  • Guidance assumes steady supply chain improvement throughout the year
  • Guidance assumes a return to a more typical distribution of quarterly sales.
  • Impact of laws, regulations and standards, consumer product safety, accounting, taxation, trade, tariffs and/or antidumping and countervailing duties petitions, healthcare, and environmental, health and safety matters
  • The company’s adjusted diluted EPS guidance for fiscal 2023 excludes certain items that are inherently uncertain and difficult to predict

Revenue & Expenses

Visualization of income flow from segment revenue to net income