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Toro
🇺🇸 NYSE:TTC
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•
Oct 31, 2023

Toro Q4 2023 Earnings Report

Reported fourth-quarter and full-year fiscal 2023 financial results, driven by strength in the professional segment.

Key Takeaways

The Toro Company reported a decrease in fourth-quarter net sales to $0.98 billion, compared to $1.17 billion in the same period of fiscal 2022. Reported diluted EPS decreased to $0.67, and adjusted diluted EPS decreased to $0.71, compared to $1.12 reported diluted EPS and $1.11 adjusted diluted EPS in the same period of fiscal 2022. The company delivered full-year net sales and adjusted diluted earnings per share growth for fiscal 2023.

Full-year net sales reached $4.55 billion, compared to $4.51 billion in fiscal 2022.

Full-year reported diluted EPS was $3.13, and adjusted diluted EPS was $4.21, compared to $4.20 reported and adjusted diluted EPS in fiscal 2022.

Fourth-quarter net sales were $0.98 billion, compared to $1.17 billion in the same period of fiscal 2022.

Fourth-quarter reported diluted EPS was $0.67, and adjusted diluted EPS was $0.71, compared to $1.12 reported diluted EPS and $1.11 adjusted diluted EPS in the same period of fiscal 2022.

Total Revenue
$983M
Previous year: $1.17B
-16.1%
EPS
$0.71
Previous year: $1.11
-36.0%
Gross Margin
33.5%
Previous year: 34%
-1.5%
Operating Margin
9.6%
Previous year: 12.8%
-25.0%
Gross Profit
$330M
Previous year: $399M
-17.4%
Cash and Equivalents
$193M
Previous year: $188M
+2.6%
Free Cash Flow
$108M
Previous year: $74.9M
+44.6%
Total Assets
$3.64B
Previous year: $3.56B
+2.5%

Toro

Toro

Toro Revenue by Segment

Toro Revenue by Geographic Location

Forward Guidance

For fiscal 2024, management expects low-single-digit total company net sales growth and adjusted diluted EPS in the range of $4.25 to $4.35.

Positive Outlook

  • Benefit from the strength of our portfolio.
  • A more stable supply chain.
  • New strategic partnership with Lowe’s.
  • Expect a more reliable supply of components will support increased, flexible production capacity within our existing manufacturing footprint.
  • Expect incremental growth from our expanded mass channel will help offset headwinds from elevated field inventory levels of residential and professional snow and lawn care solutions.

Challenges Ahead

  • Continuation of macro factors that have driven increased consumer and channel caution.
  • Manufacturing inefficiencies as production and inventory levels continue to be adjusted to market conditions.
  • Below-average snowfall activity fiscal year-to-date.
  • Assumes more typical weather patterns for the upcoming spring and summer seasons.
  • Considers the expected incremental impact of an expanded residential segment mass channel.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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