Core Viewpoint - Toro Company continues to face challenges in consumer demand for lawn care and landscaping equipment, resulting in stock price fluctuations within the $80-$100 range since Q3 2023 earnings report [2][3][18] Financial Performance - In Q3 2024, Toro reported adjusted EPS of $1.18, an improvement from $0.95 a year ago, but below the management's expectations of surpassing the previous record of $1.19 [4] - Full-year guidance for FY 2024 has been revised down, with expected sales growth of only 1% and EPS projected in the range of $4.15-$4.20, down from last year's $4.21 [4][15] - The residential segment showed strong performance with a 52.6% increase in sales and an operating margin of 12.2% [4] Market Dynamics - The professional segment, which constitutes about 75% of Toro's sales, experienced a slight year-on-year decline, although not as severe as previous quarters [5] - There is a backlog of orders in the golf and grounds and underground construction markets, but overall growth remains sluggish [5][6] Inventory Management - Toro is making progress in reducing high dealer inventories, with days sales outstanding (DSO) improving from 200 days to 119 days in Q3 2024 [7][8] - The company is approximately 80% of the way back to normal inventory levels, indicating a positive trend in inventory management [8][12] Capital Management - Toro's free cash flow (FCF) conversion is improving, currently at 82% of net income, with expectations of achieving at least 100% FCF conversion for the full year [13][15] - The company has paid off $40 million in debt, repurchased $109 million in stock, and paid $113 million in dividends so far this year [15] Valuation - Toro's stock is currently trading at a PE ratio of 19.6 times 2024 earnings, which is near the bottom of its 10-year historical range [16] - Given the slowdown in growth and reduced guidance, a PE of 20 appears fair, with a price target of $83.50 based on the midpoint of company guidance [17]

Core Insights - Toro's latest quarterly results fell short of expectations, leading to a significant drop in share price [1][2] - The company reported earnings of $1.18 per share on sales of $1.16 billion, missing Wall Street's estimates of $1.18 per share and $1.26 billion in sales [2] - Toro has lowered its full-year earnings guidance to a range of $4.15 to $4.20 per share, down from previous guidance of $4.25 to $4.35, while Wall Street had expected $4.30 per share [2] Industry Context - The operating environment for Toro is challenging, with macroeconomic concerns impacting demand for lawn care equipment [1][3] - Despite strong demand in the professional segment, including underground construction and golf course equipment, the lawn care segment is expected to face continued caution due to macro uncertainty [3] - Higher interest rates and economic uncertainty are negatively affecting housing sales, which in turn impacts demand for lawn care equipment [3] Company Outlook - Toro has resolved excess inventory issues that affected previous quarters, which could lead to a quick turnaround in the lawn care business if demand increases [4] - The company is recognized for its strong brands and quality products, with shares down 15% year to date, presenting a potential opportunity for long-term investors [4]

Key Takeaways Toro Company missed third-quarter earnings and revenue estimates as both homeowners and businesses pulled back on purchases. The maker of lawn mowers and snowblowers also reduced its full-year profit and sales forecasts. CEO Richard Olsen said the results were impacted by macroeconomic pressures. Toro Company (TTC) shares sank Thursday as the manufacturer of lawn mowers and snowblowers reported worse-than-expected results and guidance on falling demand for its products amid what Chief Executiv ...

Toro (TTC) came out with quarterly earnings of $1.18 per share, missing the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -4.07%. A quarter ago, it was expected that this landscaping, maintenance and irrigation equipment maker would post earnings of $1.27 per share when it actually produced earnings of $1.40, delivering a surprise of 10.24%. Over ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Toro (TTC) reports results for the quarter ended July 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on September 5, 2024, might help the stock move higher if these key numbers are better than expectatio ...

Exhibit 99.1 INDEX TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | | Page | | --- | --- | | Unaudited Condensed Consolidated Balance Sheets as of December 31, 2023, and June 30, 2024 | F-2 | | Unaudited Interim Condensed Consolidated Statements of Comprehensive Income for the six months ended June 30, 2023 and 2024 | F-3 | | Unaudited Condensed Consolidated Statements of Shareholders' Equity and Mezzanine Equity for the six months ended June 30, 2023 and 2024 | F-4 | | Unaudited Interim C ...

NEW YORK, July 26, 2024 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Toro Company ("Toro" or the "Company") (NYSE: TTC). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. [Click here for information about joining the class action] On this news, Toro's stock price fell $3.77 per share, or 4.2%, to close at $86.23 per share on May 21, 2024. Attorney advertising. Prior results do not guarantee similar outcomes. D ...

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Therefore, the Zacks rating upgrade for Toro basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. The change in a company's future earnings potential, as reflected in earnings estimate revi ...

The company appears to be successfully navigating through a tough period. Outdoor-equipment manufacturer Toro Co. (TTC 7.15%) beat expectations for the quarter and provided signs that its end markets are stabilizing. Investors were encouraged by the update, sending Toro shares up 8% as of 10 a.m. ET. Better-than-expected results in a tough environment Toro is a maker of professional and residential lawn care and snow removal equipment, as well as construction machinery. The company earned $1.40 per share in ...

Toro (TTC) came out with quarterly earnings of $1.40 per share, beating the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 10.24%. A quarter ago, it was expected that this landscaping, maintenance and irrigation equipment maker would post earnings of $0.66 per share when it actually produced earnings of $0.64, delivering a surprise of -3.03%. Ove ...