The 10-second takeaway
For the quarter ended Feb. 3 (Q1), Toro beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share improved significantly.
Gross margins shrank, operating margins increased, and net margins improved.
Toro reported revenue of $423.8 million. The four analysts polled by S&P Capital IQ anticipated revenue of $402.1 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $383.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.65. The five earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.65 for Q1 were 23% higher than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.6%, 110 basis points worse than the prior-year quarter. Operating margin was 8.0%, 90 basis points better than the prior-year quarter. Net margin was 4.7%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $663.4 million. On the bottom line, the average EPS estimate is $2.08.
Next year's average estimate for revenue is $1.96 billion. The average EPS estimate is $4.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 170 members rating the stock outperform and 11 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Toro a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Toro is outperform, with an average price target of $65.60.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.