Outdoor equipment company Toro (NYSE: TTC) will be reporting results tomorrow before the bell. Here’s what to look for.
The Toro Company missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $995 million, flat year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ Residential revenue 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 be flat year on year at $1.35 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $1.39 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 five 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. AGCO’s revenues decreased 30% year on year, beating analysts’ expectations by 1.8%, and Alamo reported a revenue decline of 8.1%, in line with consensus estimates. AGCO traded up 12.2% following the results while Alamo was also up 6.9%.
Read our full analysis of AGCO’s results here and Alamo’s results here.
There has been positive sentiment among investors in the agricultural machinery segment, with share prices up 8.5% on average over the last month. The Toro Company is up 9.5% during the same time and is heading into earnings with an average analyst price target of $90 (compared to the current share price of $76.67).
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