On Thursday, investors revved up their engines on news that outdoor equipment maker Toro Co. (NYSE: TTC) beat analyst expectations, sending Toro shares up 8%. Despite headwinds including high inflation and changing weather patterns due to global warming, the company reported a record $1.35 billion in revenue and $1.40 per share earnings. This beat Wall Street forecasts of $1.34 billion and $1.29 per share. The company’s revenue remained flat from the prior year and its earnings were down, which was expected. Its full-year guidance of $4.25 to $4.35 EPS gives a higher potential than consensus estimates of $4.26 per share.
Who Is Toro?
The Toro Company is a well-known business that designs and manufactures lawnmowers, snow removal equipment, and irrigation systems, and supplies for residential and commercial use. In the latest earnings call, CEO Richard Olson reported 26% growth in its residential division and successful new product rollouts. He also pointed out strong demand through mass retail channels such as Lowe’s. The company continued its key strategy of accelerating profitable growth through innovation. New products include the TITAN Zero Turn Mower and Toro TimeCutter, both well-received by Toro customers. Also introduced were its TX 1000 compact utility loader and Ditch Witch AT120 for underground construction.
What The Analysts Are Saying
Despite a growing construction demand tied to infrastructure spending and additional growth led by mass channels, there are always risks for a cyclical business. Toro stock was 20% down from its prior year’s highs. However, these recent financials should calm investors’ fears that the company was on a downward spiral. The consensus recommendation from Wall Street analysts such as Raymond James and C.L. King is a Buy for TTC, with a price target of $95. Other analysts give the stock a Hold rating but a higher price target of $98.33.
Julie has no positions in any of the stocks mentioned. Stocks.News has no positions in any of the stocks mentioned. Please see our disclosure page for more information.
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Contributing Writer
As a professional writer since 2012, Julie Stoller has covered many industries, from healthcare and technology to consumer products and industrials. She has written about IPOs, spinoffs, ETFs, stock splits, commodities, legislative actions impacting investors, and macroeconomic issues. While keeping up with the latest meme stocks and trends, Julie's special interests are discovering ...