Overview

• Outdoor solutions provider's fiscal Q1 net sales rose 4%, beating analyst expectations

• Adjusted EPS for fiscal Q1 rose 14% yr/yr, beating analyst expectations

• Company raised full-year guidance for net sales and EPS

Outlook

• Toro raises full-year net sales growth guidance to 3%-6.5%

• Toro expects full-year adjusted EPS between $4.40 and $4.60

• Company sees strong demand in underground construction and professional landscape businesses

Result Drivers

• PROFESSIONAL SEGMENT GROWTH - Driven by price realization, increased shipments of snow, ice, and underground construction products, and the Tornado acquisition

• RESIDENTIAL SEGMENT DECLINE - Lower shipments of lawn care products offset by higher snow and ice product shipments

• OPERATIONAL EFFICIENCY - Improvements in operational efficiency and working capital helped outperform typical cash flow generation

Company press release: ID:nBwzf61Ba

Key Details

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 $97.00, about 3.7% below its March 4 closing price of $100.73

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 15 three months ago

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