Free Research Report as Toro’s Quarterly Earnings Advanced 29.73%
LONDON, UK / ACCESSWIRE / April 6, 2018 / Active-Investors.com has just released a free earnings report on The Toro Co. (NYSE: TTC) ("Toro"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TTC. The Company reported its financial results on February 22, 2018, for the first quarter of the fiscal year 2018, ending February 02, 2018. The Company made a strong beginning to the new fiscal year with its first-quarter performance, wherein it surpassed analysts' estimates for earnings and revenues. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, The Toro most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For Q1 FY18, Toro's total revenues reached $548.25 million, an increase of 6.28% from $515.84 million in Q1 FY17, mainly driven by the strong performance of the professional segment. The Company's revenue numbers exceeded analysts' consensus estimates of $534.4 million.
Toro reported a gross profit of $204.24 million in Q1 FY18, up 5.56% from $193.48 million in Q1 FY17. The Company's gross profit percentage declined 0.26% to 37.25% in the quarter under review from 37.51% in the year-ago same quarter, particularly due to increased commodity costs and an unfavorable product mix.
Toro incurred selling, general, and administrative expenses (SG&A) of $137.32 million in Q1 FY18, 3.32% higher than $132.91 million in Q1 FY17. The Company's operating earnings advanced 10.49% to $66.92 million in the quarter under review from $60.57 million in the previous year's comparable quarter.
For the quarter ended February 02, 2018, Toro generated net earnings of $22.60 million, 49.76% lower than $44.99 million for the same period of the previous year. The Company's diluted earnings per share (EPS) also fell 48.78% to $0.21 in the reported quarter from $0.41 in the year-ago corresponding quarter. The reported earnings results included charges of re-evaluation of net deferred tax assets and deemed repatriation tax, as well as the benefit from the excess tax deduction for share-based compensation, due to the implementation of the federal Tax Cuts and Jobs Act 2017 (TCJA). Toro's adjusted diluted EPS, excluding these non-recurring items, were $0.48 in Q1 FY18, up 29.73% from $0.37 in Q1 FY17. This was higher than analysts' consensus estimates of $0.44 per share.
Segment Details
During Q1 FY18, Toro's Professional segment's net sales were $403.67 million, up 8.57% y-o-y, driven by an increased demand for product offerings across the portfolio worldwide. The segment had earnings before income taxes of $75.91 million in Q1 FY18 compared to $68.17 million in Q1 FY17, reflecting an increase of 11.36%.
Toro's Residential segment reported revenues of $142.51 million in Q1 FY18, an increment of 1.51% from $140.39 million in Q1 FY17, led by demand for the Company's zero-turn riding mowers. The segment had earnings before income taxes of $15.71 million in the quarter under review, a decline of 5.1% from $16.56 million in the previous year's same quarter.
For Q1 FY18, Toro's Others segment generated revenues of $2.07 million, 43.13% lower than $3.64 million in Q1 FY17. The segment had a loss before income taxes of $25.24 million in Q1 FY18 compared to a loss before income taxes of $25.17 million in Q1 FY17.
Cash Matters
Toro had cash and cash equivalents of $219.73 million as on February 02, 2018, an increase of 38.29% from $158.89 million as on February 03, 2017. The Company had a long-term debt, less current portion, of $302.47 million as on February 02, 2018, a decrease of 4.07% from $315.31 million as on February 03, 2018.
For the three months ended February 02, 2018, Toro's net cash flow from operating activities was $8.1 million, 47.07% lower than $15.29 million for the same period of last year. The Company spent $10.78 million on purchases of property, plant, and equipment in Q1 FY18 compared to $11.62 million in Q1 FY17, reflecting a decrease of 7.19%.
Toro paid $21.43 million in dividends in Q1 FY18 compared to $18.99 million in Q1 FY17. The Company spent $50.07 million in common stock repurchases in the reported quarter, 22.98% lower than $65 million in the comparable period of last year.
Outlook
For the full fiscal year 2018, Toro expects revenue growth to exceed 4% and adjusted net EPS to be in the range of $2.67 to $2.73.
For the second quarter of FY18, Toro expects adjusted net EPS to be between $1.17 and $1.22. It must be noted that these adjusted estimates exclude the one-time charges associated with the TCJA and the benefit of the excess tax deduction for share-based compensation.
On March 20, 2018, Toro's Board of Directors declared a regular quarterly cash dividend of $0.20 per share, payable on April 18, 2018, to shareholders of record as on April 04, 2018.
Stock Performance Snapshot
April 05, 2018 - At Thursday's closing bell, The Toro's stock was marginally up 0.18%, ending the trading session at $62.17.
Volume traded for the day: 500.56 thousand shares.
Stock performance in the last month – up 0.58%
After yesterday's close, The Toro's market cap was at $6.67 billion.
Price to Earnings (P/E) ratio was at 25.04.
The stock has a dividend yield of 1.29%.
The stock is part of the Industrial Goods sector, categorized under the Small Tools & Accessories industry. This sector was up 1.2% at the end of the session.
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