The Toro Company Earnings: What To Look For From TTC

Outdoor equipment company Toro (NYSE:TTC) will be reporting earnings tomorrow before market hours. Here’s what to look for.

The Toro Company met analysts’ revenue expectations last quarter, reporting revenues of $1.35 billion, flat year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates.

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 16.4% year on year to $1.26 billion, a reversal from the 6.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.23 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 agricultural machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Titan International delivered year-on-year revenue growth of 10.6%, missing analysts’ expectations by 2.8%, and Alamo reported a revenue decline of 5.5%, falling short of estimates by 2.9%. Titan International’s stock price was unchanged after the results, while Alamo was down 4.4%.

Read our full analysis of Titan International’s results here and Alamo’s results here.

Investors in the agricultural machinery segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. The Toro Company is up 1.6% during the same time and is heading into earnings with an average analyst price target of $103.2 (compared to the current share price of $91.66).

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