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Toro exceeded EPS expectations in Q2 FY25, supported by improved product mix and profitability in its Professional segment despite lower Residential sales.
Professional segment revenue rose to $1.0141 billion, driven by golf and grounds equipment.
Residential segment revenue declined due to lower mower and power product shipments.
Adjusted EPS came in at $1.42, above reported EPS of $1.37.
Gross and operating margins were slightly compressed due to higher input costs.
For FY25, Toro expects flat to -3% revenue growth and adjusted EPS between $4.15 and $4.30.
Visualization of income flow from segment revenue to net income