Toro Sales, Guidance Affected by ‘Extremely Dynamic Environment’ | Global News Avenue

Toro Corporation (Technology Center) shares fell on Wednesday after the maker of lawn mowers, snowblowers and other outdoor equipment missed sales expectations and gave weak guidance in the face of a tough economic environment.

Toro reported fourth-quarter revenue rising 9% to $1.08 billion, while analysts polled by Visible Alpha expected revenue of $1.09 billion. After adjustment Earnings per share (EPS) $0.95 is in line with estimates, but net income $89.9 million was below expectations.

Professional segment sales increased 10% to $913.9 million, primarily due to higher shipments and higher prices of golf and course products and underground construction equipment. Residential segment sales increased 4.5% to $155.1 million, driven by mass channel demand for lawn care products.

Chief Executive Officer (CEO) Richard Olson explained that the company faced an “extremely dynamic environment” during the year. Olson added that Toro “increased productivity and tightly controlled expenses” in the fourth quarter, which helped offset the impact of lower-margin products accounting for a higher-than-expected share of net sales.

Toro expects fiscal 2025 adjusted earnings per share and revenue below analysts’ expectations

For fiscal 2025, the company expects adjusted earnings per share to increase from $4.25 to $4.40, with revenue flat to growing 1.0%. Analysts expected adjusted earnings of $4.59 per share and revenue growth of 4.1%.

Toro shares fell 2% recently and are down about 13% year to date.