Overview

* Toro fiscal Q3 net sales down 2%, missing analyst expectations, per LSEG data

* Adjusted EPS for fiscal Q3 rises 5% and beats analyst expectations, per LSEG data

* Professional segment drives growth, Residential segment faces significant decline

Outlook

* Toro expects fiscal 2025 net sales flat to down 3%

* Company anticipates fiscal 2025 adjusted EPS of about $4.15

* Toro cites macro factors reducing homeowner demand

* Company sees strong demand in underground construction and golf

* AMP program on track to deliver $100 mln in savings by 2027

Result Drivers

* PROFESSIONAL SEGMENT - Growth driven by underground construction and golf and grounds, with net sales up 5.7%

* RESIDENTIAL DECLINE - Segment sales fell 27.9% due to lower homeowner demand

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $1.13 $1.16

bln bln (5

Analysts

)

Q3 Beat $1.24 $1.22 (4

Adjusted Analysts

EPS )

Q3 EPS $0.54

Q3 $122.50

Adjusted mln

Net

Income

Q3 Net $53.50

Income mln

Q3 Gross 33.7%

Margin

Q3 Gross $381.80

Profit mln

Q3 $64.80

Operatin mln

g

earnings

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

* Wall Street's median 12-month price target for Toro Co ( TTC ) is $90.00, about 10.5% above its September 3 closing price of $80.53

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)