•
Apr 29, 2022

Toro Q2 2022 Earnings Report

Reported solid results driven by operational execution and improved full-year outlook.

Key Takeaways

The Toro Company reported an 8.7% increase in net sales to $1.25 billion for the second quarter of fiscal 2022. Diluted EPS was $1.24, with adjusted diluted EPS at $1.25. The company raised its full-year fiscal 2022 net sales and adjusted diluted EPS guidance.

Net sales increased by 8.7% year-over-year, reaching $1.25 billion.

Reported diluted EPS was $1.24, and adjusted diluted EPS was $1.25.

Sequential gross margin and adjusted operating earnings margin improved from the first quarter of fiscal 2022.

Full year fiscal 2022 net sales and adjusted diluted EPS guidance were raised.

Total Revenue
$1.25B
Previous year: $1.15B
+8.7%
EPS
$1.25
Previous year: $1.29
-3.1%
Gross Margin
32.4%
Previous year: 35.1%
-7.7%
Operating Margin
13.7%
Previous year: 15.7%
-12.7%
Gross Profit
$406M
Previous year: $403M
+0.6%
Cash and Equivalents
$263M
Previous year: $498M
-47.1%
Free Cash Flow
$109M
Previous year: $208M
-47.6%
Total Assets
$3.48B
Previous year: $3B
+16.1%

Toro

Toro

Toro Revenue by Segment

Toro Revenue by Geographic Location

Forward Guidance

The company is raising its full-year fiscal 2022 guidance, and now expects total net sales growth in the range of 14% to 16% and adjusted EPS in the range of $4.00 to $4.15 per diluted share.

Positive Outlook

  • Ongoing strength in demand.
  • Operational execution.
  • Modest accretion from the Intimidator Group acquisition.
  • Strategic investments in alternative power.
  • Strategic investments in smart-connected and autonomous solutions.

Challenges Ahead

  • Global supply chain environment impacts ability to meet elevated demand.
  • Dynamic macro environment.
  • Potential charges or gains are inherently uncertain and difficult to predict.
  • Combined effect and timing of recognition of potential charges or gains is inherently uncertain and difficult to predict.
  • Any adjustments could have a substantial effect on U.S. GAAP measures of financial performance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income