NYSE$TTC

The Toro Company · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported record results, driven by strong professional segment momentum and disciplined execution.

The Toro Company reported record top and bottom line results for the fourth quarter and full year fiscal 2022, with full-year net sales exceeding four billion dollars for the first time in company history. Demand for innovative products remained strong, especially in key professional markets.

  • Full-year net sales of $4.51 billion, up 14% year over year
  • Full-year reported diluted EPS of $4.20; *adjusted diluted EPS of $4.20, up 16% year over year
  • Fourth-quarter net sales of $1.17 billion, up 22.0% year over year
  • Fourth-quarter reported diluted EPS of $1.12; *adjusted diluted EPS of $1.11, up 98% year over year

Headline financials

Total Revenue

$1.17B

Previous: $961M+22.0%
EPS (adj)

$1.11

Previous: $0.56+98.2%
Gross Margin

34.0%

Previous: 30.1%+13.0%
Capital Expenditures

$67.7M

Previous: $56.1M+20.8%
Free Cash Flow

$74.9M

Previous: $22.3M+236.1%
Net Income

$118M

Previous: $60.1M+95.7%
Operating Income

$150M

Previous: $74.2M+102.8%
Gross Profit

$399M

Previous: $289M+37.8%
Cash & Equivalents

$188M

Previous: $406M-53.6%
Total Assets

$3.56B

Previous: $2.94B+21.1%
Stock-Based Comp

$5.01M

Previous: $5.63M-11.0%

Revenue & EPS history

Toro · Revenue · Quarterly

$1.17B

Q4 2022+22%vs Q4 2021
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Toro · $1.17B total across 3 segments · Q4 2022

  • Professional
    $945M+29.0%
  • Residential
    $224M-0.8%
  • Other
    $3.78M

Forward guidance

For fiscal 2023, management expects net sales growth in the range of 7% to 10% and *adjusted diluted EPS in the range of $4.70 to $4.90. The company's guidance is based on current visibility in this evolving and dynamic macro environment, and reflects expectations for strong demand across key professional markets, normalized seasonal demand patterns for residential and landscape contractor solutions, and continued operational execution. This guidance also assumes steady supply chain improvement throughout the year, with a return to a more typical distribution of quarterly sales.

Tailwinds

  • Substantial order backlogs for products in key professional end markets
  • Expected benefits from pricing and productivity initiatives
  • Strong position to capitalize on growth opportunities with innovative product line-up
  • Trusted brands
  • Extensive distribution and service networks

Headwinds

  • Heightened level of macroeconomic uncertainty
  • Headwinds in today's macro environment
  • Agility and flexibility required to navigate headwinds
  • Prioritizing investments in key technology areas
  • Assumes steady supply chain improvement throughout the year

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 Q4 2022

Historical avgQ4 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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