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Toro
🇺🇸 NYSE:TTC
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Aug 02, 2024

Toro Q3 2024 Earnings Report

Net sales growth was driven by residential mass channel, golf and grounds, and underground construction. Macro caution increased in July, driving lower-than-expected lawn care shipments to dealers. Significant progress was made in reducing dealer field inventories of lawn care products.

Key Takeaways

The Toro Company reported a 6.9% increase in net sales to $1.16 billion for the third quarter of fiscal 2024, driven by growth in the residential segment, golf and grounds, and underground construction. Adjusted diluted EPS increased by 24.2% to $1.18. The company has revised its full-year adjusted diluted EPS guidance to a range of $4.15 to $4.20.

Third-quarter net sales increased by 6.9% to $1.16 billion compared to the same period in fiscal 2023.

Reported diluted EPS for the third quarter was $1.14, up from $(0.14) in the same period of fiscal 2023.

Adjusted diluted EPS for the third quarter was $1.18, a 24.2% increase from $0.95 in the same period of fiscal 2023.

Full-year adjusted diluted EPS guidance has been revised to a range of $4.15 to $4.20.

Total Revenue
$1.16B
Previous year: $1.08B
+6.9%
EPS
$1.18
Previous year: $0.95
+24.2%
Gross Margin
34.8%
Previous year: 34.4%
+1.2%
Operating Margin
12.8%
Previous year: -1.8%
-811.1%
Gross Profit
$403M
Previous year: $372M
+8.2%
Cash and Equivalents
$221M
Previous year: $148M
+49.5%
Free Cash Flow
$170M
Previous year: $57.4M
+195.8%
Total Assets
$3.73B
Previous year: $3.59B
+4.1%

Toro

Toro

Toro Revenue by Segment

Toro Revenue by Geographic Location

Forward Guidance

The company expects total company net sales growth of about 1% for fiscal year 2024, with adjusted diluted EPS in the range of $4.15 to $4.20. This guidance assumes a continuation of macro factors driving caution, strong demand for underground construction and golf businesses, and weather patterns aligned with historical averages.

Positive Outlook

  • Continued strong demand and stable supply for our underground construction, and golf and grounds businesses.
  • Projected strength in infrastructure spending.
  • Golf rounds played show no signs of slowing down.
  • Healthy pace of orders has continued to keep backlog elevated.
  • Expect enduring benefits from investments in innovative product line-up.

Challenges Ahead

  • Continuation of macro factors that have driven increased consumer and channel caution.
  • Remaining adjustments needed to normalize field inventory levels of lawn care products and snow and ice management solutions.
  • Manufacturing inefficiencies as production and inventory levels continue to be adjusted to market conditions.
  • The net impact across all residential mass channel partners related to our new strategic partnership with Lowe's.
  • Heightened level of macro uncertainty will continue to drive near-term caution for lawn care products.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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