Toro Fiscal Fiscal Q2 Earnings Top Street But Revenue Misses, Guidance Weak for Q3, YearDaniel McCarthy (Author) Published Date : Jun 05, 2014 19:11 ET
Turf-maintenance company Toro (TTC) reported fiscal Q2 earnings above analysts' expectations but revenue came in weaker than expected and the company forecast Q3 earnings below the Street view while reiterating guidance for the year that also was lower than analysts expected. For the quarter ended May 2, 2014, the company posted net earnings of $87.1 million, or $1.51 per share, up from $78.4 million, or $1.32 per share, in the quarter ended May 3, 2013. Analysts polled by Capital IQ were looking for earnings of $1.50 per share. Net sales climbed 5.8% to $745 million, below the mean estimate of three analysts of $751 million. The company said the sales growth was driven by driven by strong demand for professional-segment products. In the professional segment, sales jumped 6.5%, while sales in the residential segment rose 4.5%. Although retail sales of some residential products were hampered by the late spring, we experienced strong growth in our landscape-maintenance business, said CEO Michael J. Hoffman. He said the company expects to benefit from increased pre-season snowthrower shipments, primarily in the fourth quarter, that are needed to replenish inventories diminished by strong customer demand last winter. For fiscal Q3, the company forecast net EPS of about $0.82, below analysts' mean estimate of $0.86. Toro reiterated its forecast for fiscal 2014 revenue growth of 5% to 6% and net EPS of $2.90 to $2.95, which was also below the latest Street forecasts. Analysts were recently expecting a 10% jump in revenue to $2.2 billion on EPS of $2.97. TTC was inactive in recent pre-market trading after closing Wednesday at $62.39, in a 52-week range of $44.17 to $67.35.
Toro Fiscal Fiscal Q2 Earnings Top Street But Revenue Misses, Guidance Weak for Q3, Year