Toro Company (TTC) Tops Q3 EPS by 2c, Revenues Beat, Offers FY18 EPS Outlook Below Consensus

Toro Company (NYSE: TTC) reported Q3 EPS of $0.68, $0.02 better than the analyst estimate of $0.66. Revenue for the quarter came in at $655.8 million versus the consensus estimate of $664.76 million.

• Residential segment sales up 9.5 percent, rebounding nicely from the late start to spring
• Reported quarterly EPS of $0.73; adjusted quarterly EPS of $0.68, up 17.2 percent over comparable 2017 period adjusted EPS of $0.58
• Third quarter net sales increase 4.4 percent to a record $655.8 million

“As anticipated, we saw strong demand for our walk power and zero-turn mowers as our residential business rebounded nicely after the slow start to spring,” said Richard M. Olson, Toro’s chairman and chief executive officer. “The success of new products also helped bolster sales in our landscape contractor businesses, which drove professional segment revenue growth for the quarter. New products like the Exmark® Radius®, the Toro® TITAN® HD and the new diesel-powered zero-turn mowers in our landscape contractor businesses, have been well received by customers,” said Olson.

“Looking ahead, both our BOSS Snowplow and residential snow businesses have strong orders in hand and are well positioned for the coming season. We are excited about new innovative product introductions like the Toro Power Max® HD two-stage snow thrower and the BOSS rear-mounted plow that allows the operator to efficiently pull and clear snow for enhanced productivity. Other customer favorites, like the EXT extendable plow and our line of V-box spreaders, continue to build momentum.”

“In an environment of increasing input costs, particularly for steel and freight, we are committed to leveraging operational efficiencies, with a continued emphasis on productivity to mitigate the inflationary pressures. Further, we have implemented price increases across our businesses. We expect to realize the full effect of current pricing and productivity measures in fiscal 2019. With the fourth quarter underway, we remain focused on our strategic priorities, including investing in product and process innovations for the long term. The team’s dedication and execution in these areas have us well positioned to deliver on our commitment for another record year.”

GUIDANCE:

Toro Company sees FY2018 EPS of $2.66-$2.69, versus the consensus of $2.71.

For earnings history and earnings-related data on Toro Company (TTC) click here.

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