NYSE$TTC

The Toro Company · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Achieved record results for the first quarter of fiscal 2023, driven by strong professional segment performance and improved profitability.

The Toro Company reported record first-quarter net sales of $1.15 billion, a 23% increase year over year. Reported diluted EPS was $1.01, up 53% year over year, and adjusted diluted EPS was $0.98, up 49% year over year. The company reaffirms full-year fiscal 2023 net sales and adjusted diluted EPS guidance.

  • Record first-quarter net sales of $1.15 billion, up 23% year over year
  • First-quarter reported diluted EPS of $1.01, up 53% year over year
  • Record first-quarter *adjusted diluted EPS of $0.98, up 49% year over year
  • Reaffirms full-year fiscal 2023 net sales and *adjusted diluted EPS guidance

Headline financials

Total Revenue

$1.15B

Previous: $933M+23.2%
EPS (adj)

$0.98

Previous: $0.66+48.5%
Gross Margin

34.5%

Previous: 32.2%+7.1%
Capital Expenditures

-$29.3M

Previous: -$11.9M-146.4%
Free Cash Flow

-$98.2M

Previous: -$102M+3.7%
Net Income

$107M

Previous: $69.5M+53.7%
Operating Income

$136M

Previous: $91.6M+48.9%
Gross Profit

$396M

Previous: $300M+31.8%
Cash & Equivalents

$174M

Previous: $193M-9.8%
Total Assets

$3.65B

Previous: $3.25B+12.4%
Stock-Based Comp

$5.2M

Previous: $5.23M-0.5%

Revenue & EPS history

Toro · Revenue · Quarterly

$1.15B

Q1 2023+23.2%vs Q1 2022
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Toro · $1.15B total across 3 segments · Q1 2023

  • Professional
    $881M+30.9%
  • Residential
    $265M+3.6%
  • Other
    $3.57M

Forward guidance

For fiscal 2023, management continues to expect net sales growth in the range of 7% to 10% and *adjusted diluted EPS in the range of $4.70 to $4.90.

Tailwinds

  • Exceptional demand and substantial order backlog for products in key professional end markets
  • Expected benefits from pricing and productivity initiatives
  • Anticipate continued improvements in the supply chain
  • Operational execution, position us to increase product availability and enhance profitability
  • Benefit from our innovative product lineup, extensive service and support networks, and well-established market leadership

Headwinds

  • Current macroeconomic environment
  • Guidance assumes steady supply chain improvement throughout the year
  • Guidance assumes a return to a more typical distribution of quarterly sales.
  • Impact of laws, regulations and standards, consumer product safety, accounting, taxation, trade, tariffs and/or antidumping and countervailing duties petitions, healthcare, and environmental, health and safety matters
  • The company’s adjusted diluted EPS guidance for fiscal 2023 excludes certain items that are inherently uncertain and difficult to predict

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.4%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-1.3%

Avg return

30 days after

43%

30 / 69 earnings

Positive

+20.5%

Q2 2024

Best reaction

-17.4%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-2.4%+0.8%
Q1 2026-2.1%-1.8%-8.0%
Q4 2025+10.7%+8.0%+23.3%
Q3 2025-0.0%-2.2%-4.6%
Q2 2025+2.4%+3.1%+8.4%
Q1 2025-4.9%-3.3%-15.7%
Q4 2024-4.9%-6.0%-2.2%
Q3 2024-9.8%-9.0%-7.7%
Q2 2024+20.5%+19.8%+10.7%
Q1 2024-4.8%-5.9%-7.4%
Q4 2023+11.6%+10.7%+4.0%
Q3 2023-17.4%-17.4%-15.4%
Q2 2023-7.6%-6.3%-3.3%
Q1 2023-3.5%-2.4%-10.8%
Q4 2022-0.8%+0.9%-2.3%
Q3 2022-0.3%+2.6%+4.3%
Q2 2022+6.6%+7.7%-5.0%
Q1 2022-6.7%-14.6%-10.6%
Q4 2021+0.9%-4.9%+0.2%
Q3 2021+1.2%-1.4%-9.5%
Q2 2021-4.2%-2.8%+1.2%
Q1 2021-1.7%-2.7%+5.1%
Q4 2020+0.8%+1.7%+5.2%
Q3 2020+2.6%+2.4%+8.0%
Q2 2020+2.1%+1.4%-6.4%
Q1 2020-2.4%-4.7%-19.3%
Q4 2019-5.4%-1.6%+2.7%
Q3 2019-1.2%-1.7%+0.5%
Q2 2019-6.5%-7.9%-1.4%
Q1 2019+3.3%+2.6%+9.5%
Q4 2018-1.8%-2.9%-5.1%
Q3 2018-2.9%-0.9%+1.1%
Q2 2018+0.8%+0.2%-1.0%
Q1 2018+2.4%+3.3%-3.9%
Q4 2017+2.9%+0.8%+4.1%
Q3 2017-10.8%-12.6%-10.7%
Q2 2017+0.4%+1.2%+5.5%
Q1 2017-1.0%-0.8%+0.4%
Q4 2016+3.9%+1.5%+5.0%
Q3 2016+3.8%+5.0%+0.2%
Q2 2016-3.4%
Q1 2016+5.3%
Q4 2015+0.7%
Q3 2015-0.7%
Q2 2015+0.5%
Q1 2015-1.5%
Q4 2014-6.0%
Q3 2014+2.4%
Q2 2014+2.4%
Q1 2014-0.3%
Q4 2013-1.2%
Q3 2013+10.0%
Q2 2013+2.5%
Q1 2013-0.4%
Q4 2012-6.6%
Q3 2012+1.2%
Q2 2012-1.2%
Q1 2012+1.1%
Q4 2011+1.7%
Q3 2011-4.5%
Q2 2011-2.5%
Q1 2010-2.8%
Q1 2011-1.6%
Q4 2008-1.7%
Q4 2010-1.7%
Q2 2010-1.7%
Q4 2009+2.8%
Q3 2010+2.8%
Q3 2009+2.8%

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