Outdoor equipment company Toro (NYSE: TTC) will be announcing earnings results this Thursday before the bell. Here’s what to look for.
The Toro Company beat analysts’ revenue expectations last quarter, reporting revenues of $1.04 billion, up 4.2% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
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, the market is expecting The Toro Company’s revenue to grow 5.8% year on year, a reversal from the 2.3% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. The Toro Company has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at The Toro Company’s peers in the agricultural machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Alamo delivered year-on-year revenue growth of 6.7%, beating analysts’ expectations by 4.8%, and Deere reported revenues up 4.7%, topping estimates by 2.5%. Alamo’s stock price was unchanged after the resultswhile Deere was down 5.6%.
Read our full analysis of Alamo’s results here and Deere’s results here.
There has been positive sentiment among investors in the agricultural machinery segment, with share prices up 6.2% on average over the last month. The Toro Company is down 3.8% during the same time and is heading into earnings with an average analyst price target of $110.50 (compared to the current share price of $89.87).
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