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May 01, 2020
Toro Q2 2020 Earnings Report
Toro's Q2 2020 earnings were impacted by COVID-19, but residential segment growth and acquisitions partially offset the negative effects.
Key Takeaways
Toro Company reported a decrease in net sales by 3.4% year-over-year to $929.4 million, driven by COVID-19 impacts. Diluted EPS was reported at $0.91, with an adjusted EPS of $0.92. The residential segment saw growth of 12.9%, bolstered by mass retail strength and strong retail demand. The company maintains a strong liquidity position of approximately $800 million.
Net sales decreased by 3.4% year-over-year due to COVID-19 impacts.
Reported diluted EPS was $0.91, and adjusted EPS was $0.92.
Residential segment sales increased by 12.9% due to strong retail demand.
Company maintains a strong liquidity position of approximately $800 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Toro Company withdrew its guidance due to the uncertainties involved with the COVID-19 pandemic and will not be providing detailed financial quarterly or full-year guidance until visibility into market conditions has improved. The company anticipates current market trends will continue throughout the fiscal year, including customer budget constraints and cash preservation and a preference for repairs and deferrals over new equipment purchases in the professional segment, as well as higher demand in the residential segment. The company expects the most pronounced year-over-year sales and EPS percentage declines in the third quarter of fiscal 2020 and negative year-over-year fourth quarter sales and EPS growth.
Positive Outlook
- Easing of COVID-19 pressures anticipated heading into fiscal 2021.
- Optimistic about company strength and ability to drive long-term growth through innovation and superior customer service.
- Portfolio reflects customer and product diversity, scale, and a foundation of essential global operations.
- Concentration on controlling what can be controlled.
- Focus on key strategic priorities of accelerating profitable growth, driving productivity and operational excellence, and empowering people.
Challenges Ahead
- Customer budget constraints and cash preservation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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