Toro (NYSE:TTC) Releases Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Toro (NYSE:TTC) posted its quarterly earnings data on Thursday. The company reported $1.60 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.10, FiscalAI reports. The company had revenue of $1.42 billion during the quarter, compared to analyst estimates of $1.39 billion. Toro had a net margin of 7.29% and a return on equity of 31.13%. The company’s revenue was up 8.1% on a year-over-year basis. During the same quarter last year, the business posted $1.42 earnings per share. Toro updated its FY 2026 guidance to 4.500-4.620 EPS.

Here are the key takeaways from Toro’s conference call:

• The Toro Company reported a strong second quarter, with sales up 8.1%, adjusted EPS of $1.60, and its second straight quarter of double-digit adjusted earnings growth.
• Margins improved meaningfully as adjusted operating margin reached 14.4%, the best in 12 quarters, helped by the AMP productivity program and operational efficiencies.
• Demand was broad-based across the portfolio, with Professional segment sales up 9% and standout growth in underground and specialty construction, including strong momentum for the JT-120 drill and Orange Intel platform.
• Management raised full-year guidance, now expecting sales growth of 4%-6.5% and adjusted EPS of $4.50-$4.62, while noting higher inflation and tariff costs will be largely offset by pricing and productivity actions.
• The company generated strong cash flow, with $266 million of free cash flow and 125% conversion in the quarter, enabling continued shareholder returns and supporting a healthy 1.4 leverage ratio.

Toro Stock Up 3.1%

NYSE:TTC opened at $89.94 on Tuesday. Toro has a one year low of $67.04 and a one year high of $105.18. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.56 and a quick ratio of 0.74. The company has a market cap of $8.56 billion, a PE ratio of 25.92 and a beta of 0.70. The firm’s 50 day simple moving average is $92.86 and its 200 day simple moving average is $89.22.

Toro Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Shareholders of record on Tuesday, June 16th will be paid a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Tuesday, June 16th. Toro’s payout ratio is presently 44.96%.

Institutional Investors Weigh In On Toro

Several large investors have recently added to or reduced their stakes in TTC. Danske Bank A S bought a new position in Toro during the third quarter worth $46,000. Harvest Fund Management Co. Ltd bought a new position in Toro during the third quarter valued at $119,000. Caxton Associates LLP purchased a new stake in Toro in the 1st quarter worth about $285,000. Integrated Wealth Concepts LLC increased its stake in shares of Toro by 10.6% in the first quarter. Integrated Wealth Concepts LLC now owns 6,136 shares of the company’s stock worth $446,000 after purchasing an additional 586 shares in the last quarter. Finally, Focus Partners Wealth boosted its stake in Toro by 191.5% in the 1st quarter. Focus Partners Wealth now owns 7,586 shares of the company’s stock worth $552,000 after purchasing an additional 4,984 shares during the period. Institutional investors and hedge funds own 87.95% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on TTC. Weiss Ratings reissued a “hold (c)” rating on shares of Toro in a research note on Friday, April 17th. Raymond James Financial cut Toro from an “outperform” rating to a “market perform” rating in a research note on Wednesday, February 18th. Robert W. Baird reduced their price objective on shares of Toro from $105.00 to $100.00 and set a “neutral” rating on the stock in a research note on Friday. Wall Street Zen upgraded shares of Toro from a “buy” rating to a “strong-buy” rating in a report on Sunday, March 15th. Finally, DA Davidson upped their target price on shares of Toro from $97.00 to $117.00 and gave the company a “buy” rating in a research note on Monday, March 9th. Two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $101.75.

About Toro

The Toro Company (NYSE: TTC) specializes in the design, manufacture and marketing of a broad range of outdoor environment equipment for residential, commercial and professional markets. Its product portfolio includes lawn mowers, utility vehicles, snow throwers, irrigation systems and landscape maintenance equipment. Toro’s offerings span walk-behind and ride-on mowers, zero-turn radius mowers, snow blowers, sprinklers, drip irrigation products, spreaders and specialty turf maintenance machines tailored to golf courses, sports fields and municipal parks.

Founded in 1914 and headquartered in Bloomington, Minnesota, Toro has built a century-long legacy of innovation in the grounds-care industry.