12:58 PM EDT, 06/06/2024 (MT Newswires) -- Toro (TTC) reported record revenue in the fiscal second quarter on Thursday while the landscaping equipment maker reiterated its financial guidance for the ongoing year.

Revenue edged up to $1.35 billion for the three months ended May 3 from $1.34 billion a year ago. Adjusted earnings per share dropped to $1.40 from $1.58 year over year, compared with the $1.29 average estimate among six analysts surveyed by Capital IQ.

"We executed well in the second quarter, delivering results aligned with our expectations and achieving record net sales," Chief Executive Richard Olson said in a statement. Shares of Toro were soaring 12% in midday trade.

Professional segment sales slid 5.9% to $1.01 billion due to lower shipments of zero-turn mowers that were partially offset by higher shipments of underground and specialty construction equipment and golf grounds products. "For these businesses, our team drove incremental output within our existing manufacturing footprint to address elevated order backlog and better serve our customers," Olson said.

Residential division sales jumped 26% to $335.6 million, reflecting increased shipments to Toro's mass channel that helped partially offset lower dealer-channel shipments. The company expects ongoing shipments growth in the mass channel this year that Olson said will help counter lower preseason shipments of snow and ice management products.

For fiscal 2024, Toro continues to expect low single-digit net sales growth over 2023's sales of $4.55 billion. It continues to see adjusted EPS in the $4.25 to $4.35 range, implying an increase from $4.21 year over year. Six analysts surveyed by Capital IQ are modeling for revenue of $4.64 billion, while seven analysts are expecting normalized EPS of $4.26.

The professional segment is expected to reflect continued strong demand for underground construction products, which Olson said is supported by a "long runway" of multi-year public and private infrastructure projects. The company is "encouraged by the positive signs of recovery in homeowner markets," which should support the lawn care business, he said.

Healthy golf budgets supported by sustained momentum in rounds played, an increase in new golfers, and new course development bodes well for the golf business, according to Olson.

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