On June 8, The Toro Company released results for its fiscal second-quarter ended May 5, 2023. Toro announced sales gains in its professional segment that were somewhat offset by poor performance in the residential sector.
“We continued our strong momentum in the second quarter, and delivered record top and bottom-line results,” said Richard M. Olson, chairman and chief executive officer. “These results were driven by our professional segment, where continued demand, operational execution, and supply chain improvements drove broad sales volume gains and increased profitability. In our residential segment, sales volume and earnings were pressured by unfavorable weather patterns and macroeconomic factors. Once again, the strength of our diversified portfolio, growing scale, and disciplined team drove positive results overall.”
- Record second-quarter net sales of $1.34 billion, up 7% year over year
- Record second-quarter reported diluted EPS of $1.59, up 28% year over year
- Record second-quarter *adjusted diluted EPS of $1.58, up 26% year over year
- Full-year fiscal 2023 net sales and *adjusted diluted EPS guidance ranges narrowed
Looking ahead, Olson said, “We enter the second half of fiscal 2023 with continuing strong demand and substantial order backlog for our professional segment products in construction, and golf and grounds markets, as well as indications of a steadily improving supply chain. We expect this will drive our performance in the second half, with a continuation of improved production rates for key categories as we focus on optimizing output to better serve our customers. Even with production improvements, given the pace of new orders we expect our backlog level to remain elevated throughout and beyond this fiscal year. For the residential segment, we expect sales volume in the second half to be challenged by macroeconomic uncertainty and consumer spending patterns, and to also reflect the impact of the unfavorable weather year to date. Importantly, we expect the benefits from this segment’s refreshed product lineup, expanded channel, and strong brand to continue to drive competitive advantage for the long term.
“We have a long track record of managing through economic cycles and weather patterns with agility and resiliency, bolstered by our leadership in attractive end markets and our ability to leverage innovation and synergies across our broad portfolio. These factors, along with our talented team and best-in-class distribution and service networks, give us confidence in our ability to execute well through a range of possible macroeconomic outcomes for the remainder of the year and beyond. We believe we are well positioned to enhance our market leadership and deliver value for all stakeholders now and into the future, guided by our enterprise strategic priorities of accelerating profitable growth, driving productivity and operational excellence, and empowering people.”
The Toro Company conducted its earnings call and webcast for investors on June 8, 2023. The webcast will be available at www.thetorocompany.com/invest. As posted on the company’s website, webcast participants will need to complete a brief registration form and should allocate extra time before the webcast begins to register and, if necessary, install audio software.