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Oct 31, 2021

Toro Q4 2021 Earnings Report

Reported record full-year fiscal 2021 results, with double-digit net sales growth in both segments in the fourth quarter.

Key Takeaways

The Toro Company reported strong Q4 and full-year fiscal 2021 results, exceeding top- and bottom-line guidance with double-digit net sales growth in both the professional and residential segments. Despite global supply chain challenges and inflationary pressures, the company delivered solid results through employee and channel partner collaboration.

Net sales increased by 14.2% year over year to $960.7 million.

Professional segment net sales were up 13.7%.

Residential segment net sales increased by 19.8%.

Reported and adjusted diluted EPS were $0.56.

Total Revenue
$961M
Previous year: $841M
+14.2%
EPS
$0.56
Previous year: $0.64
-12.5%
Gross Margin
30.1%
Previous year: 35.7%
-15.7%
Operating Margin
7.7%
Previous year: 11.1%
-30.6%
Gross Profit
$289M
Previous year: $300M
-3.7%
Cash and Equivalents
$406M
Previous year: $480M
-15.5%
Free Cash Flow
$22.3M
Previous year: $202M
-89.0%
Total Assets
$2.94B
Previous year: $2.85B
+2.9%

Toro

Toro

Toro Revenue by Segment

Toro Revenue by Geographic Location

Forward Guidance

For fiscal year 2022, management expects net sales growth in the range of 8% to 10% and adjusted EPS in the range of $3.90 to $4.10 per diluted share. The guidance is based on current visibility and reflects expectations for a strong demand environment and increasing net price realization, coupled with the continuation of a challenging operating environment.

Positive Outlook

  • Robust demand for innovative products
  • Focus on serving customers
  • Benefits from productivity initiatives
  • Benefits from pricing actions
  • Strong demand environment

Challenges Ahead

  • Challenging macro environment will continue for at least the near term
  • Managing expenses prudently
  • Prioritizing investments that support long-term, sustainable growth across businesses
  • Global supply chain challenges
  • Inflationary pressures

Revenue & Expenses

Visualization of income flow from segment revenue to net income