Lawnmower maker Toro's Q3 net sales miss estimates on lower demand

Toro Co

04/09/2025 13:40

Overview

Toro fiscal Q3 net sales down 2%, missing analyst expectations, per LSEG data

Adjusted EPS for fiscal Q3 rises 5% and beats analyst expectations, per LSEG data

Professional segment drives growth, Residential segment faces significant decline

Outlook

Toro expects fiscal 2025 net sales flat to down 3%

Company anticipates fiscal 2025 adjusted EPS of about $4.15

Toro cites macro factors reducing homeowner demand

Company sees strong demand in underground construction and golf

AMP program on track to deliver $100 mln in savings by 2027

Result Drivers

PROFESSIONAL SEGMENT - Growth driven by underground construction and golf and grounds, with net sales up 5.7%

RESIDENTIAL DECLINE - Segment sales fell 27.9% due to lower homeowner demand

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$1.13 bln
$1.16 bln (5 Analysts)
Q3 Adjusted EPS
Beat
$1.24
$1.22 (4 Analysts)
Q3 EPS
$0.54
Q3 Adjusted Net Income
$122.50 mln
Q3 Net Income
$53.50 mln
Q3 Gross Margin
33.7%
Q3 Gross Profit
$381.80 mln
Q3 Operating earnings
$64.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

Wall Street's median 12-month price target for Toro Co is $90.00, about 10.5% above its September 3 closing price of $80.53

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw6BM6tla

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)