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Toro Beats on Both Top and Bottom Lines

By Seth Jayson – Updated Apr 10, 2017 at 1:12PM

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Just the facts, Fool.

Toro (NYSE: TTC) reported earnings on May 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 3 (Q2), Toro beat slightly on revenues and beat expectations on earnings per share.

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

Margins grew across the board.

Revenue details
Toro booked revenue of $704.5 million. The two analysts polled by S&P Capital IQ anticipated sales of $695.4 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 $1.32. The four earnings estimates compiled by S&P Capital IQ averaged $1.17 per share. GAAP EPS of $1.32 for Q2 were 17% higher than the prior-year quarter's $1.13 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 35.8%, 180 basis points better than the prior-year quarter. Operating margin was 16.7%, 130 basis points better than the prior-year quarter. Net margin was 11.1%, 110 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $512.2 million. On the bottom line, the average EPS estimate is $0.69.

Next year's average estimate for revenue is $2.02 billion. The average EPS estimate is $2.46.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 187 members out of 198 rating the stock outperform, and 11 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Toro a green thumbs-up, and one 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 $46.00.

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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. The Motley Fool has no position in any of the stocks mentioned. 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.

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Stocks Mentioned

The Toro Company Stock Quote
The Toro Company
TTC
$88.59 (2.79%) $2.40

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