Toro Company (TTC) Misses Q4 EPS by 2c, Revenues Beat

Toro Company (NYSE: TTC) reported Q4 EPS of $0.32, $0.02 worse than the analyst estimate of $0.34. Revenue for the quarter came in at $539.3 million versus the consensus estimate of $516.6 million.

“We are pleased to deliver another record year with solid revenue growth led by the professional segment and a strong rebound by our residential business in the second half of the year, driven by an exciting lineup of new products and innovative technologies,” said Richard M. Olson, Toro’s chairman and chief executive officer. “Our landscape contractor business performed well throughout the year as customers saw the value in our new Exmark® and Toro® zero-turn mower platforms, designed to increase productivity while enhancing ease of operation. Higher shipments of mowers, sprayers and vehicles in our golf and grounds businesses also contributed to the full-year performance, as momentum experienced early in the fiscal year continued through the fourth quarter.”

“In our residential business, we saw demand for walk power mowers and riding products extend through the fall months and the sell-in of snow products was favorable in the fourth quarter, as the next generation of our Power Max® HD two-stage snow thrower was well received. BOSS also had a successful year due to new product introductions like the rear-mounted plow and the newly acquired Snowrator, part of the L.T. Rich acquisition completed earlier this fiscal year. With recent snowfalls in key regions of the United States, we are encouraged by retail activity and we remain well positioned to help our customers battle the winter ahead.”

“Like many other industries, the inflationary environment presented challenges for us that escalated throughout the year, particularly in the fourth quarter. Rising steel prices, the impacts of tariffs, and increased freight rates, all had a negative impact on our input costs. While we expect these pressures to continue into the first part of fiscal 2019, we are confident that our intense focus on prudent sourcing strategies, productivity and cost improvement initiatives, as well as strategic capital investments and price adjustments, will more than offset these headwinds by the end of fiscal 2019."

“With the first quarter of fiscal 2019 underway, we are encouraged by the retail activity in our professional and residential snow and ice management businesses. Looking ahead, as customers start to prepare for the spring turf season, sentiment remains positive among contractors and turf professionals. Excitement is building around our new product introductions like the Dingo® TXL 2000 compact utility loader, the Outcross® turf tractor and the Exmark® Staris™ stand-on zero-turn mower.”

“We remain focused on our Vision 2020 employee initiative. With year two of the three-year initiative already underway, we remain committed to our long-term strategic priorities, while delivering value for all of our stakeholders. I would like to thank our team and channel partners for their dedication in managing through this dynamic time with consistent execution and a continued focus on our end customers.”

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

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