Toro's Running of the Bulls

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Investors are feeling bullish about Toro (NYSE: TTC) today, after the maker of outdoor lawn maintenance equipment raised its guidance for the recently concluded April quarter. The company is apparently moving quite a few lawn mowers, irrigation systems, and assorted turf-care products. It's now expecting to report profits of $1.28 to $1.33 a share later this month. It had originally expected to earn no more than $1.20 a share.

On a projected revenue range between $625 million to $630 million, this is where it really gets good; the company expects to grow earnings by roughly 30% over last year's showing, while the top line is looking to rise by about 15%.

Improving margins -- which have gone from 5.5% three years ago to better than 9% for its new fiscal second quarter targets -- are obviously a great sign. The fact that Toro is growing its earnings at a healthier clip than its sales makes the spunky stock a legitimate growth stock candidate.

While an investor can pick up shares of Toro's larger and more diversified rivals, such as Deere (NYSE: DE) or Caterpillar (NYSE: CAT), at cheaper sales and earnings multiples, Toro is the nimble one worth watching.

While the company claimed that poor weather held back its residential segment -- which amounts to just a third of its business anyway -- it just goes to show how the upward surprise would have been even greater if the skies were just a little bit sunnier.

Then again, with the stock trading as much as 10% higher earlier today, one can argue that shareholders have all the sunshine they need.

Graze through these other Toro headlines:

• Toro has been mowing down expectations -- in a good way -- since last year.
• Back in March we looked at Toro and its promising prospects with spring landscaping on the horizon.
• If you enjoy keeping your Toro happy, you may appreciate our Building / Maintaining a Home discussion board.

Longtime Fool contributor Rick Munarriz doesn't mind breaking a sweat, though he doesn't have the green thumb to manage his home's lawn and garden. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.