Toro Misses The Mark: Q4 Earnings Disappoint Amid 15 Years Of Sales Growth
Benzinga - Dec 18th, 2024
The Toro Company's shares fell after reporting disappointing Q4 2024 results. While sales rose 9% year-over-year to $1.076 billion, they missed the $1.09 billion consensus. Adjusted EPS increased by 34% to $0.95, falling short of the expected $0.96. The Residential segment saw a 4.5% sales increase but recorded a loss due to higher costs. Conversely, the Professional segment sales grew by 10.3%, with earnings up 36.3% due to productivity and pricing gains despite cost pressures. The company's adjusted gross margin decreased to 32.3%, and the operating margin improved to 10.9%. Despite the sales miss, CEO Richard M. Olson highlighted continued sales growth and a focus on future growth and profitability. For FY25, Toro projects net sales growth of 0%-1% and adjusted EPS between $4.25 and $4.40, below estimates. TTC shares decreased by 3.34% to $82.46.
RATING
The article provides a factual report on The Toro Company's financial performance, with some areas needing improvement in balance and transparency.
RATING DETAILS
The article appears to be factually accurate, with specific figures and percentages provided for sales, earnings, and other financial metrics. The data is presented clearly and would be verifiable with access to the company's financial reports.
The article primarily focuses on the financial performance of The Toro Company without offering perspectives from analysts or market experts. While it reports both positive and negative financial outcomes, it lacks a broader range of viewpoints.
The article is clear and concise, with a neutral tone and logical structure. It effectively communicates the financial results without using emotive language, though some financial jargon could be clarified for a general audience.
The article cites Benzinga as the source, which is a known financial media outlet. However, the lack of additional sources or expert opinions limits the depth of the reporting.
The article provides financial data but lacks transparency regarding potential biases or affiliations. It does not disclose any conflicts of interest, which is crucial for financial reporting.