Outdoor equipment company Toro (NYSE: TTC) will be announcing earnings results tomorrow before market open. Here’s what to look for.
The Toro Company missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $1.08 billion, up 9.4% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations.
Is The Toro Company a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting The Toro Company’s revenue to be flat year on year at $1.00 billion, improving from the 12.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.63 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The Toro Company has missed Wall Street’s revenue estimates five times over the last two years.
Looking at The Toro Company’s peers in the agricultural machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Titan International’s revenues decreased 1.7% year on year, missing analysts’ expectations by 2.7%, and AGCO reported a revenue decline of 24%, falling short of estimates by 8.5%. Titan International traded down 9.2% following the results while AGCO was also down 3.3%.
Read our full analysis of Titan International’s results here and AGCO’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the agricultural machinery stocks have shown solid performance, the group has generally underperformed, with share prices down 9.7% on average over the last month. The Toro Company is down 6.6% during the same time and is heading into earnings with an average analyst price target of $93.20 (compared to the current share price of $75.96).
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