NYSE$TTC

The Toro Company · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong second-quarter fiscal 2021 results, driven by broad-based demand and operational execution, leading to record results for both segments.

The Toro Company reported record results for the second quarter of fiscal 2021, with net sales up 23.6% year over year to $1.15 billion. Reported EPS was $1.31, and adjusted EPS was $1.29, a 40.2% increase year over year. The company raised its full-year fiscal 2021 net sales and adjusted EPS guidance.

  • Second-quarter net sales increased by 23.6% year over year, reaching $1.15 billion.
  • Professional segment net sales grew by 25.3%, while Residential segment net sales increased by 20.2%.
  • Reported diluted EPS was $1.31, with an adjusted diluted EPS of $1.29, marking a 40.2% year-over-year increase.
  • The company raised its full-year fiscal 2021 net sales and adjusted diluted EPS guidance.

Headline financials

Total Revenue

$1.15B

Previous: $929M+23.6%
EPS (adj)

$1.29

Previous: $0.92+40.2%
Gross Margin

35.1%

No prior period
Capital Expenditures

-$26.2M

Previous: -$27.2M+3.6%
Free Cash Flow

$292M

Previous: $43.7M+568.9%
Net Income

$142M

Previous: $98.4M+44.4%
Operating Income

$181M

Previous: $126M+43.7%
Gross Profit

$403M

Previous: $307M+31.4%
Cash & Equivalents

$498M

Previous: $200M+148.8%
Total Assets

$3B

Previous: $2.81B+6.6%
Stock-Based Comp

$5.83M

Previous: $1.41M+314.3%

Revenue & EPS history

Toro · Revenue · Quarterly

$1.15B

Q2 2021+23.6%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Toro · $1.15B total across 3 segments · Q2 2021

  • Professional
    $828M+25.3%
  • Residential
    $315M+20.2%
  • Other
    $5.71M-9.5%

Forward guidance

The company is raising its full-year fiscal 2021 guidance, and now expects total net sales growth in the range of 12.0% to 15.0% and adjusted EPS in the range of $3.45 to $3.55 per diluted share.

Tailwinds

  • Positive demand trends across businesses
  • Enthusiastic customer response to innovative new product offerings
  • Benefits from productivity and synergy initiatives

Headwinds

  • Escalation of supply chain pressures
  • Inflationary pressure
  • Anticipate the impact of this pressure to be most pronounced in the third quarter, before mitigating actions can be more fully realized.

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 Q2 2021

Historical avgQ2 2021

-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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