- Adjusted EPS: $1.18, missed the estimate of $1.22, but up from $0.95 year-over-year (y/y).
- Net Sales: $1.16 billion, a rise of 6.9% y/y, but below the estimate of $1.26 billion.
- Professional Net Sales: $880.9 million, down 1.7% y/y, missed the estimate of $986.4 million.
- Residential Net Sales: $267.5 million, increased by 53% y/y, beating the estimate of $258.6 million.
- EPS: Reported EPS of $1.14.
- Adjusted Operating Income: $159.0 million, an increase of 20% y/y, below the estimate of $170.2 million.
- Fiscal 2024 Outlook: The company expects net sales growth of about 1%, and adjusted diluted EPS between $4.15 and $4.20.
- Residential Segment: Significant growth driven by strong mass channel following destocking last year and incorporation of Lowe’s.
- Professional Segment: Growth in underground construction, and golf and grounds businesses with increased output and shipments.
- Market Caution: Both segments saw increased caution from homeowners and lawn care dealers, leading to lower-than-expected shipments as the summer progressed.
- Analyst Recommendations: 2 buys and 5 holds; no sell recommendations.
Toro Co on Smartkarma
Independent analysts on Smartkarma have covered Toro Co, a company specializing in gas-powered outdoor power equipment. A detailed analysis done by Value Investors Club on Toro Co on Monday, Mar 25, 2024, presents a bearish sentiment. The report raises concerns about the company’s involvement in credit extension through quasi-off-balance sheet financing vehicles like Red Iron. Toro Co mainly caters to professional customers with a focus on Pro sales as their primary revenue source, along with serving residential customers. This report highlights potential risks associated with Toro Co‘s financial practices, providing valuable insights for investors to consider.
Contrastingly, another report by Value Investors Club on Toro Co, published on Monday, Mar 18, 2024, offers a bullish perspective. The analysis emphasizes Toro Co‘s specialization in the manufacturing and sale of equipment for various industries like golf courses, sports fields, public parks, and agricultural operations. The report underscores Toro Co‘s commitment to innovation, durability, and efficiency in its products, contributing to a strong market presence and driving steady profits. With a focus on recurring revenue through maintenance and repair services, Toro Co aims to expand its customer base and enhance shareholder value. These insights provide a positive outlook on the company’s future prospects.
A look at Toro Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, the long-term outlook for Toro Co appears to be positive. With solid scores in key areas such as Dividend, Growth, Resilience, and Momentum, the company is positioned well for future success. A particularly strong momentum score indicates that Toro Co may be experiencing favorable market trends and investor sentiment, which could bode well for its future performance.
The Toro Company, known for designing, manufacturing, and marketing turf equipment globally, offers a diverse range of products catering to professional turf maintenance, irrigation systems, landscaping, and residential yard care. With its established presence under well-known trademarks like Toro and Lawn-Boy, Toro Co‘s strategic positioning across various segments of the market sets a strong foundation for sustained growth and profitability in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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