Outdoor equipment company Toro (NYSE: TTC) will be reporting earnings this Wednesday before market open. Here’s what to expect.
The Toro Company missed analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $1.13 billion, down 2.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and full-year EPS guidance missing analysts’ expectations.
Is The Toro Company a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting The Toro Company’s revenue to decline 2.9% year on year to $1.05 billion, a reversal from the 9.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The Toro Company has missed Wall Street’s revenue estimates five times over the last two years.
Looking at The Toro Company’s peers in the heavy machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Deere delivered year-on-year revenue growth of 14.1%, missing analysts’ expectations by 9%, and Alamo reported revenues up 4.7%, topping estimates by 3.1%. Deere traded down 6.8% following the results while Alamo was also down 3.7%.
Read our full analysis of Deere’s results here and Alamo’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 8.8% on average over the last month. The Toro Company is up 5.4% during the same time and is heading into earnings with an average analyst price target of $92.60 (compared to the current share price of $73.49).
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