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Jul 30, 2021

Toro Q3 2021 Earnings Report

Toro's third-quarter performance was driven by robust sales growth across both professional and residential segments, amidst navigating global supply chain challenges.

Key Takeaways

The Toro Company reported record third-quarter fiscal 2021 results, with net sales up 16.2% year over year to $977 million. The company raised its full-year fiscal 2021 net sales and adjusted diluted EPS guidance.

Net sales increased by 16.2% year-over-year, reaching $977 million.

Professional segment net sales rose by 15.2%, while Residential segment net sales increased by 23.0%.

Reported EPS stood at $0.89, with adjusted diluted EPS at $0.92, marking a 12.2% increase year-over-year.

The company is increasing its full-year fiscal 2021 guidance, and now expects net sales growth of about 17% and *adjusted EPS in the range of $3.53 to $3.57 per diluted share.

Total Revenue
$977M
Previous year: $841M
+16.2%
EPS
$0.92
Previous year: $0.82
+12.2%
Gross Margin
33.9%
Previous year: 35%
-3.1%
Operating Margin
12.5%
Previous year: 13.8%
-9.4%
Gross Profit
$331M
Previous year: $295M
+12.4%
Cash and Equivalents
$535M
Previous year: $394M
+35.8%
Free Cash Flow
$137M
Previous year: $216M
-36.6%
Total Assets
$2.97B
Previous year: $2.81B
+5.5%

Toro

Toro

Toro Revenue by Segment

Toro Revenue by Geographic Location

Forward Guidance

The company is increasing its full-year fiscal 2021 guidance, and now expects net sales growth of about 17%, up from a range of 12% to 15% previously, and *adjusted EPS in the range of $3.53 to $3.57 per diluted share.

Positive Outlook

  • Anticipate continued strong demand for product offerings.
  • Encouraged by the benefits from productivity and synergy initiatives.
  • Positioned to deliver excellent results for the full fiscal year.
  • Expect record organic growth.
  • Approaching $4 billion in annual revenue.

Challenges Ahead

  • Likely to be a challenging supply chain environment into next year.
  • Inflation pressures.
  • Labor environment pressures.
  • Continuing supply chain pressures.
  • Continuing inflation pressures.

Revenue & Expenses

Visualization of income flow from segment revenue to net income