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Aug 04, 2023
Toro Q3 2023 Earnings Report
Toro's third quarter results were impacted by lower-than-expected homeowner demand for lawn care solutions, while construction, and golf and grounds markets showed continued strength.
Key Takeaways
The Toro Company reported a decrease in net sales to $1.08 billion compared to $1.16 billion in the same period last year. Reported diluted EPS was ($0.14), including non-cash impairment charges. Adjusted diluted EPS was $0.95, compared to $1.19 in the comparable period of fiscal 2022. The company revised its full-year adjusted diluted EPS guidance to a range of $4.05 to $4.10.
Net sales for the third quarter were $1.08 billion, a decrease of 7% compared to the same period in fiscal 2022.
Reported diluted EPS for the third quarter was ($0.14), which includes non-cash impairment charges.
Adjusted diluted EPS for the third quarter was $0.95, compared to $1.19 in the comparable period of fiscal 2022.
The company announced a new strategic partnership with Lowe’s.
Toro
Toro
Toro Revenue by Segment
Toro Revenue by Geographic Location
Revenue by Segment
Professional Revenue
CapyFin.comResidential Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The company expects net sales similar to slightly higher than the prior fiscal year, and adjusted diluted EPS in the range of $4.05 to $4.10 for the fiscal year ending October 31, 2023.
Positive Outlook
- Continued supply chain stabilization.
- Leveraging existing manufacturing footprint to implement incremental, flexible production capacity.
- New strategic partnership with Lowe’s to bolster market presence.
- Strong brands.
- Innovative new product pipeline and extensive distribution networks.
Challenges Ahead
- Continued macro factors affecting third quarter results.
- Incremental manufacturing inefficiencies as production is further aligned to demand.
- Elevated dealer field inventories of lawn care solutions.
- Higher floorplanning expense than originally anticipated.
- Macro dynamics and weather patterns exacerbating rebalancing of homeowner demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income