Toro's Earnings Rise in Fiscal Q3, but Professional Sales Dip

Motley Fool09-06

Net sales increased by 6.9% to $1.156 billion. Adjusted diluted EPS rose 24.2% to $1.18. Professional segment net sales declined 1.7%, but residential segment net sales surged by 52.6%. ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nToro's Earnings Rise in Fiscal Q3, but Professional Sales Dip\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-06 00:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/data-news/2024/09/05/toro-s-earnings-rise-in-fiscal-q3-but-professional-sales-dip/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Net sales increased by 6.9% to $1.156 billion.\n\n\n\n\n\n\n\nAdjusted diluted EPS rose 24.2% to $1.18.\n\n\n\n\n\n\n\nProfessional segment net sales declined 1.7%, but residential segment net sales surged by 52.6%.\n...</p>\n\n<a href=\"https://www.fool.com/data-news/2024/09/05/toro-s-earnings-rise-in-fiscal-q3-but-professional-sales-dip/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TTC","symbol_name":"托罗配件","start_time":0,"source_url":"https://www.fool.com/data-news/2024/09/05/toro-s-earnings-rise-in-fiscal-q3-but-professional-sales-dip/","article_id":"2465552452","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fcdn.content.foolcdn.com%2Fimages%2F1umn9qeh%2Fproduction%2Fcb6f5fe9339299edb3bf0b5eb5feae1dec4063b2-6000x4000.jpg&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2465552452","pubTimestamp":1725552120,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"The company reported solid results despite macroeconomic headwinds, with net sales up and a significant rise in adjusted EPS.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"TTC":"托罗配件"},"translate_title":"Toro第三财季盈利增长，但专业销售额下降","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TTC":1},"content_text":"Net sales increased by 6.9% to $1.156 billion.\n\n\n\n\n\n\n\nAdjusted diluted EPS rose 24.2% to $1.18.\n\n\n\n\n\n\n\nProfessional segment net sales declined 1.7%, but residential segment net sales surged by 52.6%.\n\nToro (TTC -11.55%), known for its turf maintenance and landscaping products, released results for the third quarter of its fiscal 2024 on Sept. 5. The company reported net sales of $1.156 billion, a 6.9% increase from $1.081 billion in the same period last year, meeting management's expectations. Net income of $119.3 million was a turnaround from its loss of $15.0 million in Q3 2023, with adjusted diluted EPS increasing 24.2% to $1.18. However, the company revised its full-year adjusted EPS guidance down to a range of $4.15 to $4.20 from its previous forecast of $4.25 to $4.35.MetricFiscal Q3 2024 ResultFiscal Q3 2024 GuidanceFiscal Q3 2023% Change (YoY)Net sales$1.156 billionLow single-digit percentage growth$1.081 billion6.9%Net earnings$119.3 million-($15.0 million)895%Adjusted diluted EPS$1.18-$0.9524.2%Gross margin34.8%-34.4%0.4%Effective tax rate17.3%-47.6%-Professional segment net sales$880.9 million-$896.3 million(1.7%)Residential segment net sales$267.5 million-$175.3 million52.6%Source: Guidance from Toro's fiscal Q2 earnings report released June 6.Understanding ToroToro provides a range of products and services in turf maintenance, irrigation, and landscaping. It operates through two main segments: professional and residential.Recently, Toro has focused on reducing field inventory levels and improving manufacturing efficiency. The company's AMP (Advanced Manufacturing Productivity) initiative will be a critical driver for achieving better productivity and operational efficacy. This initiative has begun to show results, but management has acknowledged that the full benefits will take another two years to unfold.Quarterly HighlightsFiscal Q3 2024, which ended Aug. 2, saw important shifts in Toro’s financial performance. While net sales increased 6.9% year over year, segment performance was mixed. The professional segment's net sales declined 1.7% to $880.9 million, mainly due to lower shipments of snow and ice management products and equipment for compact utility loading. This decline aligned with elevated field inventories and manufacturing adjustments. The residential segment saw a massive 52.6% jump in net sales to $267.5 million, driven by higher shipments to mass-market channels like Lowe’s (LOW -1.25%).The company posted net earnings of $119.3 million -- a significant improvement from its loss of $15.0 million in Q3 2023. Adjusted diluted EPS climbed 24.2% to $1.18. Gross margin improved to 34.8% from 34.4% the prior year. These gains were partly offset by higher material and manufacturing costs. Notably, Toro's effective tax rate was reduced to 17.3%, which contributed to the boost in net earnings.Despite these positives, management highlighted areas of concern that included manufacturing inefficiencies and production adjustments that continue to affect performance. The AMP initiative has started yielding productivity benefits, although rising materials costs impacted overall gains. Toro also made significant strides in reducing dealers' field inventories of lawn care products, a necessary adjustment for aligning production with market demand. Strategic partnerships, like its recent collaboration with Lowe’s, have provided substantial gains in the residential segment.Looking AheadManagement's outlook for fiscal 2024 remains cautious due to macroeconomic uncertainties. Expected net sales growth is about 1%, and the adjusted diluted EPS guidance has been revised down to a range of $4.15 to $4.20 from the previous $4.25 to $4.35.Investors should monitor the company’s efforts to resolve its manufacturing inefficiencies and reduce inventory levels. As macroeconomic conditions evolve, Toro’s agility in adapting its operations will be crucial for sustaining growth and maintaining financial health.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.4","shortVersion":"4.26.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2465552452"}