Toro Crushes Earnings Estimates

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 22, 2013 at 12:00AM
Other

Toro (NYSE: TTC) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 1 (Q1), Toro missed estimates on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
Toro booked revenue of $444.7 million. The three analysts polled by S&P Capital IQ foresaw revenue of $454.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.53. The four earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.53 for Q1 were 61% higher than the prior-year quarter's $0.33 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 37.3%, 270 basis points better than the prior-year quarter. Operating margin was 10.4%, 240 basis points better than the prior-year quarter. Net margin was 7.1%, 240 basis points better than the prior-year quarter.


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Looking ahead
Next quarter's average estimate for revenue is $712.5 million. On the bottom line, the average EPS estimate is $1.19.

Next year's average estimate for revenue is $2.07 billion. The average EPS estimate is $2.42.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 184 members out of 195 rating the stock outperform, and 11 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give Toro a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Toro is hold, with an average price target of $39.50.

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