BLOOMINGTON, Minn. - The Toro Company (NYSE:TTC), a global provider of outdoor environment solutions, reported a decline in its first-quarter adjusted earnings per share (EPS) and net sales, amidst varying market conditions.
The company's adjusted EPS came in at $0.64, slightly below analysts' expectations of $0.66. Revenue for the quarter was $1 billion, aligning with the consensus estimate, but marked a 13% decrease from the $1.15 billion reported in the same quarter of the previous fiscal year.
CEO Richard M. Olson attributed the mixed results to strong demand in underground and specialty construction as well as golf and grounds businesses, which was offset by lower shipments of zero-turn mowers and snow and ice management products. The latter was influenced by below-average snowfall activity. Despite these challenges, the company managed to drive productivity gains that helped counterbalance higher material costs.
For the professional segment, net sales were down 14.1% to $756.5 million, while earnings fell 21.7% to $112.8 million compared to the prior year. The residential segment also saw a decrease in net sales by 9.3% to $240.1 million, with earnings dropping 37.8% to $23.5 million. The company's gross margin remained relatively stable at 34.4%, only slightly down from 34.5% in the previous year.
Looking ahead, Toro reaffirmed its full-year fiscal 2024 guidance, projecting low-single-digit net sales growth and an adjusted diluted EPS range of $4.25 to $4.35. This forecast assumes continued strong demand and more stable supply for businesses with elevated order backlog, and it accounts for the impact of below-average snowfall activity to date.
Olson expressed confidence in the company's ability to navigate economic cycles and seasonal variability, citing innovation leadership and strong business fundamentals. He highlighted Toro's commitment to delivering superior innovation and customer care, supported by a robust balance sheet and disciplined capital allocation. The company is prioritizing investments in advanced technologies, such as the proprietary Hypercell™ smart battery system, to drive long-term profitable growth.
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