Baird has revised its price target for Toro Company (TTC, Financial), elevating it to $85 from the previous target of $84 while maintaining a Neutral rating on the stock. This adjustment was made after the firm updated its projections in anticipation of the company's upcoming second-quarter report. The revision was influenced by analyses of industry peer performance and feedback from dealer assessments.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for The Toro Co (TTC, Financial) is $89.75 with a high estimate of $100.00 and a low estimate of $80.00. The average target implies an upside of 20.26% from the current price of $74.63. More detailed estimate data can be found on the The Toro Co (TTC) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, The Toro Co's (TTC, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for The Toro Co (TTC, Financial) in one year is $99.44, suggesting a upside of 33.24% from the current price of $74.63. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the The Toro Co (TTC) Summary page.
TTC Key Business Developments
Release Date: March 06, 2025
- Total Company Net Sales: $995 million, slightly down from Q1 last year.
- Adjusted Diluted EPS: $0.65, up from $0.64 last year.
- Professional Segment Net Sales: $768.8 million, up 1.6% year over year.
- Professional Segment Earnings: $127.2 million, up 13% from last year.
- Professional Segment Earnings Margin: 16.5%, up from 14.9% last year.
- Residential Segment Net Sales: $221 million, down from $240 million last year.
- Residential Segment Earnings: $17.2 million, down from $23.5 million last year.
- Residential Segment Earnings Margin: 7.8%, down from 9.8% last year.
- Reported Gross Margin: 33.7%, down from 34.4% last year.
- Adjusted Gross Margin: 34.1%, down from 34.4% last year.
- SG&A Expense as a Percentage of Net Sales: 25.9%, up from 25.6% last year.
- Operating Earnings Margin: 7.8%, down from 8.8% last year.
- Adjusted Operating Earnings Margin: 9.4%, up from 9.2% last year.
- Interest Expense: $15 million, down from $16.2 million last year.
- Reported Effective Tax Rate: 20.1%, up from 19% last year.
- Adjusted Effective Tax Rate: 20.2%, down from 20.8% last year.
- Inventory: $1.14 billion, down about 3% compared to last year.
- Free Cash Flow: $67.7 million use of cash, an improvement over last year.
- Share Repurchases: $100 million during the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The Toro Co (TTC, Financial) reported first-quarter bottom line results that exceeded expectations despite below-average snowfall in key markets.
- Professional segment net sales increased by 1.6% year over year, driven by higher shipments of golf and grounds products and zero turn mowers.
- The company achieved $64 million in run rate savings to date from its AMP initiative, with $50 million realized in the first quarter.
- The Toro Co (TTC) introduced several innovative products, including the Toro Turf Pro autonomous mower and the Exmark Turf Tracer with XiQ, enhancing its market leadership.
- The company maintained its full-year fiscal 2025 net sales and adjusted diluted earnings per share guidance, reflecting confidence in its strategic initiatives and market position.
Negative Points
- Consolidated net sales for the quarter were slightly down from the previous year, impacted by the divestiture of Pope Products and lower shipments in the residential segment.
- Residential segment net sales decreased due to elevated field inventories of snow products and lower shipments of portable power products.
- Reported EPS was $0.52 per diluted share, down from $0.62 last year, indicating a decline in profitability.
- Higher material, manufacturing, and freight costs negatively impacted gross margins, which were slightly lower than the previous year.
- The uncertain and rapidly changing tariff environment poses a risk to future financial performance, with potential impacts not fully included in the current guidance.
