Raymond James has adjusted its price target for Toro Company (TTC, Financial), reducing it from $95 to $90 while maintaining an Outperform rating on the stock. The firm anticipates that Toro will experience both earnings growth and a slight expansion in valuation multiples. This outlook is based on the expectation that many of the temporary challenges faced in recent years will gradually diminish.
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 $88.00 with a high estimate of $100.00 and a low estimate of $80.00. The average target implies an upside of 20.05% from the current price of $73.30. 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 $99.53, suggesting a upside of 35.78% from the current price of $73.3. 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: June 05, 2025
- Revenue: Declined 2.3% year-over-year to $1.3 billion.
- Adjusted Earnings Per Share (EPS): Increased to $1.42, exceeding expectations.
- Reported EPS: $1.37 per diluted share, compared to $1.38 last year.
- Professional Segment Net Sales: Just over $1 billion, up about 1% year-over-year.
- Professional Segment Earnings: $202 million, up 6% year-over-year.
- Professional Segment Earnings Margin: 19.9%, up from 19%.
- Residential Segment Net Sales: $297 million, down 11% year-over-year.
- Residential Segment Earnings: $16 million, compared to $36 million last year.
- Residential Segment Earnings Margin: 5.4%, compared to 10.8% last year.
- Adjusted Gross Margin: 33.4%, compared to 33.6% last year.
- SG&A Expense: 19.8% of net sales, up slightly from 19.7% last year.
- Free Cash Flow: $84.7 million, a slight decrease year-over-year.
- Share Repurchases: $100 million during the quarter, $200 million year-to-date.
- Adjusted Effective Tax Rate: 18.7%, compared to 19.8% last year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The Toro Co (TTC, Financial) exceeded its adjusted earnings per share expectations for the quarter, achieving $1.42.
- The company continued to return cash to shareholders through dividends and share repurchases, deploying $100 million towards share repurchases in the quarter.
- The professional segment showed growth, with net sales over $1 billion, driven by higher shipments of golfing grounds products.
- The AMP program has generated $70 million in run rate savings and is on track to deliver $100 million by 2027.
- The Toro Co (TTC) received the 2024 Ace Hardware Vendor of the Year award, recognizing substantial sales growth and innovative products.
Negative Points
- Revenue for the quarter declined 2.3% year-over-year to $1.3 billion, impacted by weak consumer confidence and a late spring.
- Residential segment net sales decreased by 11% year-over-year, primarily due to lower shipments of certain products and divestitures.
- The company faced higher material and manufacturing costs, which impacted margins despite productivity improvements.
- Tariff headwinds are expected to be approximately 3% of the annual cost of goods sold, posing a challenge to cost management.
- The guidance for fiscal 2025 was adjusted to reflect additional macroeconomic headwinds, with total year revenue expected to be flat to down 3% from fiscal 2024.
