Thu, Jun 6, 4:46 PM (137 days ago)
The Toro Company’s Form 10-Q for the quarter ended May 3, 2024, highlights a mixed financial performance. The company reported consolidated net sales of $1,349.0 million, a slight increase of 0.7% compared to the same quarter last year. However, net earnings decreased to $144.8 million from $167.5 million, reflecting a 13.6% decline. This translated to diluted earnings per share (EPS) of $1.38, down from $1.59. The Professional segment saw a 5.9% decline in net sales to $1,005.6 million, primarily due to lower shipments of zero-turn mowers, while the Residential segment experienced a 26.3% increase to $335.6 million, driven by higher shipments to the mass channel. Gross profit decreased by 5.6% to $453.0 million, with gross margin contracting by 220 basis points to 33.6%, attributed to product mix and higher material and manufacturing costs. SG&A expenses rose slightly, and interest expenses increased due to higher average borrowings and interest rates. Cash flow from operations improved significantly to $135.1 million, up from $61.7 million, driven by favorable working capital fluctuations. The company maintained its quarterly dividend and continued share repurchases, returning $85.1 million to shareholders. Future operations may be impacted by ongoing cost pressures and inventory management challenges.