Better weather this summer was good news for Toro
Homeowners bought more lawn mowers, both walk power mowers and zero-turn riding mowers from Toro this summer after a long, wet spring dampened their purchasing earlier this year.
The added sales helped Toro exceeded profit expectations in the third quarter ended Aug. 3. The Bloomington-based company earned $79 million, or 73 cents per share, compared with net earnings of $68.4 million, or 61 cents per share, in the same quarter a year ago.
The company’s adjusted earnings of 68 cents per share beat analysts’ expectations by two pennies.
However, Toro’s record sales of $655.8 million, an increase of 4.4 percent over last year, was shy of expectations of $664.8 million.
The sale of residential equipment grew 9.5 percent in the period and helped Toro to report total third quarter revenue of $655.8 million, an increase of 4.4 percent over the third quarter last year. Revenues were a record for the third quarter but lower than the consensus estimate among analysts who predicted sales of $664.8 million.
Residential sales grew 9.5 percent in the period, while the larger professional segment saw a 3 percent increase to $482.5 million.
Looking forward, Toro customers are already preparing for the winter season with increased preseason orders.
“Both our Boss Snowplow and residential snow businesses have strong orders in hand and are well-positioned for the coming season,” Toro Chairman and CEO Richard Olson said in the company’s earnings release.
Toro will also have new and ice management products to offer those customers including a new Toro two-stage snow thrower and new snowplows from their BOSS division.
Toro did lower the top end of its earnings guidance range for the remainder of the year in anticipation of increasing impacts of tariffs and raw material price increases. After the company’s second quarter ended in April the company expected fiscal 2018 earnings to be between $2.66 and $2.71 per share, it now expects the range to be $2.66 to $2.69 per share for the full fiscal year.
The company’s stock was trading down about 4 percent in midday trading.
Patrick Kennedy • 612-673-7926