Toro Slips Over 12% On Q3 Loss, Lower-than-expected Annual Outlook

(RTTNews) - Shares of The Toro Company (TTC) were trading down over 12 percent on Thursday after the company registered a loss for the third-quarter and revised down its full year 2023 guidance below analysts' view.

TTC was trading down by 12.97 percent at $87.16 per share on the New York Stock Exchange.

For the third-quarter, the outdoor solutions provider posted a loss of $14.963 million or $0.14 per share, compared with a profit of $125.150 million or $1.19 per share last year. The company noted that a sharp reduction in homeowner demand for residential and professional segment lawn care products has impacted its third-quarter financial performance.

Richard M. Olson, CEO of Toro, said: "The softness in homeowner demand was driven by a combination of macro factors, including economic uncertainty, higher interest rates, and consumer spending preferences following a period of exceptional demand during the pandemic, along with unusually unfavorable weather patterns. These factors led to significantly lower than expected shipments of lawn care solutions in both our residential and professional segments."

In addition, third-quarter non-cash impairment charges of $151.263 million have limited the company to perform as expected.

Looking ahead, for full year to October 31, 2023, the company now expects adjusted income per share of $4.05 to $4.10. On average, six analysts polled by Thomson Reuters project the firm to earn income per share of $4.79. Earlier, excluding items, Toro had projected earnings per share of $4.70 to $4.80.

TTC now expects its sales similar to slightly higher than the prior fiscal year against its previous sales growth expectation range of 7 percent to 8 percent.

Analysts, on average, expect Toro to record sales of $4.86 billion, for the year.