Toro Company Down 0.88% To $82.20 After Earnings Beat

Toro Co (TTC) beat out earnings estimates for Q3 2022 this morning.

The consensus among analysts for Toro Company was for an earnings per share (EPS) of $1.13. The firm was able to surpass those projections, reporting an EPS of $1.19, a positive surprise of $0.06 (5%). Profits rose 29% year-over-year after reporting an EPS of $0.92 in its year-ago quarter. The positive growth rate signals that the Industrials company is performing well amid recent economic conditions.

Consensus estimates for Toro Company revenue averaged out to $1.2 billion, with the business missing on those expectations with reported third-quarter revenue of $1.2 billion. The $19 million (2%) negative revenue surprise led to 19% growth year-over-year as the firm reported revenue of $976.8 million in its year-ago quarter. The higher earnings growth compared to revenue points to Toro Company improving its profit margin.

The stock is down 0.88% to $82.20 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Hold which may get revised based on this new data.

Trading in the five days leading up to the report earned Toro Company a Neutral Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 36. Meanwhile, the average Wall Street analyst rated the stock a Hold.

The Toro Co manufactures turf maintenance and landscaping equipment. The company produces reel and rotary riding products, trim cutting and walking mowers, greens rollers, turf sprayer equipment, underground irrigation systems, heavy-duty walk-behind mowers, and sprinkler systems used for professional turf and landscape maintenance and construction. Its products are marketed through a network of distributors and dealers to primarily professional users maintaining turfs and sports fields such as golf courses. Its operating segments are Professional and Residential. The company also produces snow plowers and ice management products. Its largest end market is the United States.