Landscaping, maintenance and irrigation equipment maker The Toro Co. (TTC) reported a 163% jump in earnings for the first quarter helped by strong performance across landscape contractor, golf, grounds, as well as snow and ice management businesses. The results exceeded analysts’ expectations. However, the company guided second-quarter earnings below the consensus view.
Net income soared 163% to $59.5 million and earnings jumped 161.9% to $0.55 per share. Adjusted earnings rose 6.3% to $0.51 per share.
Net sales were $603 million, up 10% from the previous year quarter. The strength of new products across the portfolio drove positive performance for the quarter.
Professional segment sales grew 12.7%, led by strength in landscape contractor sales, increased golf and grounds channel demand, and positive momentum in its Boss business. Residential segment net sales rose 1.9% as higher snowfall totals across the Midwest and solid sales of walk power mowers drove higher demand for snow throwers.
Looking ahead into the second quarter, the company expects adjusted earnings to be about $1.15 to $1.20 per share, which includes an estimated $0.07 for the impact of acquisition-related expenses and share repurchase curtailment. This assumes the acquisition of Charles Machine Works closes in the third quarter.
This results in an adjusted EPS estimate of $1.66 to $1.71 for the first six months, which equates to the operational performance of $1.76 to $1.81, excluding acquisition-related impacts. The company expects to update its guidance at, or after, the closing of the acquisition.
Shares of Toro ended Wednesday’s regular session up 0.93% at $64.11 on the NYSE. The stock has risen over 3% in the past year and over 6% in the past three months.