Toro Q2 2024 Earnings Report
Key Takeaways
The Toro Company reported record net sales for the second quarter of fiscal 2024, driven by exceptional growth in the residential segment and underground construction. Net sales reached $1.35 billion, with diluted EPS at $1.38. The company reaffirms its full-year fiscal 2024 guidance.
Second-quarter net sales reached $1.35 billion, slightly up from $1.34 billion in the same period of fiscal 2023.
Second-quarter reported diluted EPS was $1.38, compared to $1.59 in the same period of fiscal 2023.
Residential segment saw exceptional growth due to strong mass channel performance and successful new product introductions.
Significant progress was made in reducing dealer field inventories of lawn care products.
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Toro Revenue by Segment
Forward Guidance
The company continues to expect low single-digit total company net sales growth for fiscal 2024, and adjusted diluted EPS in the range of $4.25 to $4.35.
Positive Outlook
- Continued strong demand and stable supply for businesses with elevated order backlog.
- Expect continued strength in demand for our underground construction business, supported by a long runway of robust private and public multi-year spending to address global infrastructure needs.
- Expect continued strength in our golf business, with healthy budgets supported by the sustained momentum in rounds played, an increase in new golfers, and new course development.
- Expect continued growth in shipments to our residential segment mass channel.
- Favorable spring weather patterns to date.
Challenges Ahead
- Continuation of macro factors that have driven increased consumer and channel caution.
- Weather patterns aligned with historical averages for the remainder of the year.
- Elevated field inventory levels of lawn care and snow and ice management products.
- Manufacturing inefficiencies as production and inventory levels continue to be adjusted to market conditions.
- The net impact across all residential mass channel partners related to our new strategic partnership with Lowe's.
Revenue & Expenses
Visualization of income flow from segment revenue to net income