Toro Company (TTC) Tops Q1 EPS by 10c, Revenues Beat; Offers FY21 EPS Guidance Below Consensus

Toro Company (NYSE: TTC) reported Q1 EPS of $0.85, $0.10 better than the analyst estimate of $0.75. Revenue for the quarter came in at $873 million versus the consensus estimate of $851.38 million.

FIRST-QUARTER FISCAL 2021 FINANCIAL HIGHLIGHTS

• Net sales of $873.0 million, up 13.7% from $767.5 million in the first quarter of fiscal 2020.
• Net earnings of $111.3 million, up 58.8% from $70.1 million in the first quarter of fiscal 2020; *adjusted net earnings of $93.2 million, up 33.8% from $69.7 million in the first quarter of fiscal 2020.
• Reported EPS of $1.02 per diluted share, up 56.9% from $0.65 per diluted share in the first quarter of fiscal 2020; *adjusted EPS of $0.85 per diluted share, up 32.8% from $0.64 per diluted share in the first quarter of fiscal 2020.
• Deployed $90.0 million to pay down debt and returned $59.8 million to shareholders through regular dividends and the resumption of share repurchases; liquidity of approximately $1.0 billion as of January 29, 2021.

“We began fiscal 2021 with strong momentum across our professional and residential businesses,” said Richard M. Olson, chairman and chief executive officer. “This drove double-digit top-line growth in the current dynamic environment, primarily due to higher shipments of professional landscape contractor zero-turn riding mowers and robust retail demand for residential snow equipment and Flex-Force battery-powered products. Incremental sales from the Venture Products acquisition also contributed to first-quarter growth. We expanded profitability in the quarter by executing on our productivity initiatives and through disciplined cost management. We continued to provide innovative products that align with the needs of our customers, and invested in key technology areas including alternative power, smart connected and autonomous, to drive long-term sustainable growth. We are grateful to our team and channel partners for their perseverance in serving our customers while remaining focused on keeping each other safe.”

GUIDANCE:

Toro Company sees FY2021 EPS of $3.35-$3.45, versus the consensus of $3.48.

“Looking ahead to the remainder of the fiscal year, we are encouraged by continuing positive demand trends. As we enter the key selling season for many of our professional businesses, we are well positioned with our suite of new products to capitalize on the recovery occurring across core markets. We also expect to see ongoing retail demand for our innovative residential segment all-season product lineup. Our guidance is based on current visibility and certain potential effects of COVID-19. We are actively managing a dynamic supply chain and cost inflation environment. We intend to deliver profitable growth by focusing on our enterprise strategic priorities and the needs of our customers,” concluded Olson.

The Company is reaffirming its full-year fiscal 2021 guidance of total net sales growth in the range of 6.0% to 8.0% and *adjusted EPS in the range of $3.35 to $3.45 per diluted share. The *adjusted diluted EPS guidance range excludes the benefit of the excess tax deduction for share-based compensation and the favorable one-time legal settlement in the first quarter of fiscal 2021.

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

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