NYSE$TTC

The Toro Company · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported record third-quarter results, driven by strong professional segment performance and increased profitability.

The Toro Company reported a record third-quarter with net sales up 18.8% year over year to $1.16 billion and a diluted EPS of $1.19. The company's performance was driven by strong demand in the professional segment and operational execution that led to gross margin and operating earnings margin expansion. The company has raised its full-year adjusted diluted EPS guidance.

  • Net sales increased by 18.8% year-over-year to reach $1.16 billion.
  • Diluted EPS was reported as $1.19.
  • Gross margin and operating earnings margin experienced expansion due to operational execution.
  • Full-year adjusted diluted EPS guidance was raised.

Headline financials

Total Revenue

$1.16B

Previous: $977M+18.8%
EPS (adj)

$1.19

Previous: $0.92+29.3%
Gross Margin

34.5%

Previous: 33.9%+1.8%
Capital Expenditures

-$75.8M

Previous: -$48M-58.0%
Free Cash Flow

$78.8M

Previous: $429M-81.6%
Net Income

$125M

Previous: $96.3M+29.9%
Operating Income

$163M

Previous: $122M+33.7%
Gross Profit

$400M

Previous: $331M+20.8%
Cash & Equivalents

$232M

Previous: $535M-56.7%
Total Assets

$3.44B

Previous: $2.97B+15.9%
Stock-Based Comp

$5.97M

Previous: $5.83M+2.4%

Revenue & EPS history

Toro · Revenue · Quarterly

$1.16B

Q3 2022+18.8%vs Q3 2021
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Toro · $1.16B total across 3 segments · Q3 2022

  • Professional
    $886M+23.3%
  • Residential
    $270M+7.1%
  • Other
    $4.36M-30.2%

Forward guidance

The company updated its full-year fiscal 2022 guidance and now expects total net sales growth of about 14% and adjusted diluted EPS in the range of $4.07 to $4.17.

Tailwinds

  • Solid demand for innovative solutions across end markets.
  • Well-prepared to capitalize on growth opportunities.
  • Strong orders in the professional segment.
  • Exceptional momentum in underground construction and golf.
  • Favorable demand for solutions geared to landscape contractors and residential customers.

Headwinds

  • Keeping a close eye on the mixed signals in the economy.
  • Watching the broader supply chain environment, which continues to show signs of improvement.
  • Dynamic macro environment.
  • Expectations for more normal residential demand patterns.
  • Full-year fiscal 2022 guidance is based on management’s current visibility.

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 Q3 2022

Historical avgQ3 2022

-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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