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Apr 30, 2021

Toro Q2 2021 Earnings Report

Reported strong second-quarter fiscal 2021 results, driven by broad-based demand and operational execution, leading to record results for both segments.

Key Takeaways

The Toro Company reported record results for the second quarter of fiscal 2021, with net sales up 23.6% year over year to $1.15 billion. Reported EPS was $1.31, and adjusted EPS was $1.29, a 40.2% increase year over year. The company raised its full-year fiscal 2021 net sales and adjusted EPS guidance.

Second-quarter net sales increased by 23.6% year over year, reaching $1.15 billion.

Professional segment net sales grew by 25.3%, while Residential segment net sales increased by 20.2%.

Reported diluted EPS was $1.31, with an adjusted diluted EPS of $1.29, marking a 40.2% year-over-year increase.

The company raised its full-year fiscal 2021 net sales and adjusted diluted EPS guidance.

Total Revenue
$1.15B
Previous year: $929M
+23.6%
EPS
$1.29
Previous year: $0.92
+40.2%
Gross Margin
35.1%
Operating Margin
15.7%
Gross Profit
$403M
Previous year: $307M
+31.4%
Cash and Equivalents
$498M
Previous year: $200M
+148.8%
Free Cash Flow
$208M
Previous year: $78.8M
+163.7%
Total Assets
$3B
Previous year: $2.81B
+6.6%

Toro

Toro

Toro Revenue by Segment

Toro Revenue by Geographic Location

Forward Guidance

The company is raising its full-year fiscal 2021 guidance, and now expects total net sales growth in the range of 12.0% to 15.0% and adjusted EPS in the range of $3.45 to $3.55 per diluted share.

Positive Outlook

  • Positive demand trends across businesses
  • Enthusiastic customer response to innovative new product offerings
  • Benefits from productivity and synergy initiatives

Challenges Ahead

  • Escalation of supply chain pressures
  • Inflationary pressure
  • Anticipate the impact of this pressure to be most pronounced in the third quarter, before mitigating actions can be more fully realized.

Revenue & Expenses

Visualization of income flow from segment revenue to net income