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Oct 31, 2022

Toro Q4 2022 Earnings Report

Reported record results, driven by strong professional segment momentum and disciplined execution.

Key Takeaways

The Toro Company reported record top and bottom line results for the fourth quarter and full year fiscal 2022, with full-year net sales exceeding four billion dollars for the first time in company history. Demand for innovative products remained strong, especially in key professional markets.

Full-year net sales of $4.51 billion, up 14% year over year

Full-year reported diluted EPS of $4.20; *adjusted diluted EPS of $4.20, up 16% year over year

Fourth-quarter net sales of $1.17 billion, up 22.0% year over year

Fourth-quarter reported diluted EPS of $1.12; *adjusted diluted EPS of $1.11, up 98% year over year

Total Revenue
$1.17B
Previous year: $961M
+22.0%
EPS
$1.11
Previous year: $0.56
+98.2%
Gross Margin
34%
Previous year: 30.1%
+13.0%
Operating Margin
12.8%
Previous year: 7.7%
+66.2%
Gross Profit
$399M
Previous year: $289M
+37.8%
Cash and Equivalents
$188M
Previous year: $406M
-53.6%
Free Cash Flow
$74.9M
Previous year: $22.3M
+236.1%
Total Assets
$3.56B
Previous year: $2.94B
+21.1%

Toro

Toro

Toro Revenue by Segment

Toro Revenue by Geographic Location

Forward Guidance

For fiscal 2023, management expects net sales growth in the range of 7% to 10% and *adjusted diluted EPS in the range of $4.70 to $4.90. The company's guidance is based on current visibility in this evolving and dynamic macro environment, and reflects expectations for strong demand across key professional markets, normalized seasonal demand patterns for residential and landscape contractor solutions, and continued operational execution. This guidance also assumes steady supply chain improvement throughout the year, with a return to a more typical distribution of quarterly sales.

Positive Outlook

  • Substantial order backlogs for products in key professional end markets
  • Expected benefits from pricing and productivity initiatives
  • Strong position to capitalize on growth opportunities with innovative product line-up
  • Trusted brands
  • Extensive distribution and service networks

Challenges Ahead

  • Heightened level of macroeconomic uncertainty
  • Headwinds in today's macro environment
  • Agility and flexibility required to navigate headwinds
  • Prioritizing investments in key technology areas
  • Assumes steady supply chain improvement throughout the year

Revenue & Expenses

Visualization of income flow from segment revenue to net income