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Jul 31, 2020
Toro Q3 2020 Earnings Report
The Toro Company reported third-quarter fiscal 2020 results, with residential segment retail demand and incremental Venture Products sales as key drivers.
Key Takeaways
The Toro Company reported a slight increase in net sales, driven by strong performance in the residential segment and incremental sales from the Venture Products acquisition. The professional segment experienced a decrease in sales due to COVID-19 related impacts. The company's liquidity position remains strong.
Net sales increased by 0.3% year over year to $841 million.
Reported and adjusted diluted EPS were $0.82.
Residential segment net sales increased by 38% due to strong retail demand.
The company maintained a strong liquidity position of nearly $1 billion.
Toro
Toro
Toro Revenue by Segment
Toro Revenue by Geographic Location
Revenue by Segment
Professional Revenue
CapyFin.comResidential Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The company anticipates that fiscal 2020 fourth-quarter adjusted EPS would be similar to that of its fiscal 2019 fourth quarter, on higher net sales.
Positive Outlook
- Continued year-over-year growth in the residential market is expected, but at a more moderate level.
- Professional markets should benefit from the gradual return to more normal buying patterns as customers' confidence in the economy increases.
- Innovation
- Strong customer relationships
- Sustained value creation through disciplined capital allocation.
Challenges Ahead
- These positive trends will likely be somewhat offset by remaining COVID-19 headwinds, such as budget constraints.
- Effects of social distancing restrictions
- Regional variations in economic recovery
- Uncertain nature of the economic environment
- Precision is difficult in this environment
Revenue & Expenses
Visualization of income flow from segment revenue to net income