Loading...
•
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.
Revenue by Segment
Revenue by Geographic Location
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...