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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.
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 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