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May 05, 2023
Toro Q2 2023 Earnings Report
Reported record results for the second-quarter of fiscal 2023, driven by strong professional segment performance and continued production improvements.
Key Takeaways
The Toro Company reported record second-quarter results with net sales of $1.34 billion, up 7% year over year, and diluted EPS of $1.59, up 28% year over year. The professional segment drove these results due to continued demand, operational execution, and supply chain improvements. The company narrowed its full-year fiscal 2023 net sales and adjusted diluted EPS guidance ranges.
Record second-quarter net sales of $1.34 billion, up 7% year over year.
Record second-quarter reported diluted EPS of $1.59, up 28% year over year.
Record second-quarter adjusted diluted EPS of $1.58, up 26% year over year.
Full-year fiscal 2023 net sales and adjusted diluted EPS guidance ranges narrowed.
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
For fiscal 2023, management is narrowing guidance, and now expects net sales growth in the range of 7% to 8% and adjusted diluted EPS in the range of $4.70 to $4.80. This updated guidance is based on current visibility in this evolving and dynamic macro environment, and reflects expectations for continued strong demand across key professional segment markets, reduced volume for solutions geared to homeowners, and continued operational execution.
Positive Outlook
- Continuing strong demand for professional segment products in construction, and golf and grounds markets.
- Substantial order backlog for professional segment products.
- Indications of a steadily improving supply chain.
- Continuation of improved production rates for key categories.
- Expect benefits from residential segment’s refreshed product lineup, expanded channel, and strong brand to continue to drive competitive advantage for the long term.
Challenges Ahead
- Sales volume in the residential segment expected to be challenged by macroeconomic uncertainty and consumer spending patterns.
- Residential segment sales volume also expected to reflect the impact of the unfavorable weather year to date.
- The company manages through economic cycles and weather patterns with agility and resiliency.
- Company leverages innovation and synergies across its broad portfolio.
- Company has a talented team and best-in-class distribution and service networks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income