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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.
Toro
Toro
Toro Revenue by Segment
Toro Revenue by Geographic Location
Revenue by Segment
Professional Revenue
CapyFin.comResidential Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com 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.
- Preference for repairs and deferrals over new equipment purchases in the professional segment.
- Most pronounced year-over-year sales and EPS percentage declines expected in the third quarter of fiscal 2020.
- Negative year-over-year fourth quarter sales and EPS growth expected.
- Uncertainties related to the COVID-19 pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income