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Jul 29, 2022

Toro Q3 2022 Earnings Report

Reported record third-quarter results, driven by strong professional segment performance and increased profitability.

Key Takeaways

The Toro Company reported a record third-quarter with net sales up 18.8% year over year to $1.16 billion and a diluted EPS of $1.19. The company's performance was driven by strong demand in the professional segment and operational execution that led to gross margin and operating earnings margin expansion. The company has raised its full-year adjusted diluted EPS guidance.

Net sales increased by 18.8% year-over-year to reach $1.16 billion.

Diluted EPS was reported as $1.19.

Gross margin and operating earnings margin experienced expansion due to operational execution.

Full-year adjusted diluted EPS guidance was raised.

Total Revenue
$1.16B
Previous year: $977M
+18.9%
EPS
$1.19
Previous year: $0.92
+29.3%
Gross Margin
34.5%
Previous year: 33.9%
+1.8%
Operating Margin
14%
Previous year: 12.5%
+12.0%
Gross Profit
$400M
Previous year: $331M
+20.8%
Cash and Equivalents
$232M
Previous year: $535M
-56.7%
Free Cash Flow
$71.9M
Previous year: $137M
-47.4%
Total Assets
$3.44B
Previous year: $2.97B
+15.9%

Toro

Toro

Toro Revenue by Segment

Toro Revenue by Geographic Location

Forward Guidance

The company updated its full-year fiscal 2022 guidance and now expects total net sales growth of about 14% and adjusted diluted EPS in the range of $4.07 to $4.17.

Positive Outlook

  • Solid demand for innovative solutions across end markets.
  • Well-prepared to capitalize on growth opportunities.
  • Strong orders in the professional segment.
  • Exceptional momentum in underground construction and golf.
  • Favorable demand for solutions geared to landscape contractors and residential customers.

Challenges Ahead

  • Keeping a close eye on the mixed signals in the economy.
  • Watching the broader supply chain environment, which continues to show signs of improvement.
  • Dynamic macro environment.
  • Expectations for more normal residential demand patterns.
  • Full-year fiscal 2022 guidance is based on management’s current visibility.

Revenue & Expenses

Visualization of income flow from segment revenue to net income