Toro Co. Cuts Top End Of FY23 View; Stock Down In Premarket - Update

(RTTNews) - Toro Co. (TTC), a provider of innovative solutions for the outdoor environment, on Thursday trimmed the top end of its earnings and net sales growth forecast for fiscal 2023, despite reporting higher second-quarter results.

In pre-market activity on the NYSE, the shares were losing around 3.86 percent at $100.62.

For fiscal 2023, the company now expects adjusted earnings per share in the range of $4.70 to $4.80 on net sales growth in the range of 7 percent to 8 percent.

The company previously expected adjusted earnings per share in the range of $4.70 to $4.90 on net sales growth in the range of 7 percent to 10 percent.

Analysts on average expect the company to earn $4.85 per share for the year, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The Street expects revenues to grow 10.50 percent from last year to $4.99 billion fo the year.

Richard Olson, chairman and chief executive officer, 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."

Olson further said that the company expects 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.

In its second quarter, the bottom line came in at $167.5 million, or $1.59 per share. This compares with $131.1 million, or $1.24 per share, in last year's second quarter.

Adjusted earnings were $166.4 million or $1.58 per share for the period. The company's revenue for the quarter rose 7.2 percent to $1.34 billion from $1.25 billion last year.

Analysts expected the company to earn $1.52 per share on revenues of $1.44 billion.

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