Outdoor equipment company Toro (NYSE:TTC) will be reporting earnings tomorrow before market open. Here’s what investors should know.
The Toro Company missed analysts’ revenue expectations by 8.1% last quarter, reporting revenues of $1.16 billion, up 6.9% year on year. It was a disappointing quarter for the company, with 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.
This quarter, analysts are expecting The Toro Company’s revenue to grow 10.8% year on year to $1.09 billion, a reversal from the 16.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 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 six 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’s revenues decreased 32.8% year on year, meeting analysts’ expectations, and AGCO Corporation reported a revenue decline of 24.8%, falling short of estimates by 10.4%. Deere traded up 10.2% following the results while AGCO Corporation was down 3.4%.
Read our full analysis of Deere’s results here and AGCO Corporation’s results here.
Investors in the heavy machinery segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. The Toro Company is up 5.5% during the same time and is heading into earnings with an average analyst price target of $97.40 (compared to the current share price of $86.36).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
