Toro (TTC) on Thursday lifted its full-year outlook on the back of a fiscal second-quarter beat that came amid broad-based customer demand and margin expansion.
The lawn mowers and golf equipment manufacturer now expects fiscal 2026 adjusted earnings between $4.50 and $4.62 per share, up from the prior outlook that called for $4.40 to $4.60. Analysts polled by FactSet expect $4.54 per share.
Full-year net sales growth is pegged at 4% to 6.5%, reflecting a higher bottom end from 3% previously expected. Wall Street is modeling for $4.74 billion.
"We continue to capitalize on market opportunities in underground construction, landscape contractor and golf, while successfully executing our margin improvement initiatives," Chief Executive Richard Olson said in a statement. "This performance gives us the confidence to raise our full-year guidance, while also reflecting the persistent and dynamic inflationary environment."
For the second quarter ended May 1, adjusted EPS rose to $1.60 from $1.42 a year earlier amid strong demand and continued margin expansion. Analysts were expecting $1.51 estimate.
Total net sales jumped 8.1% year on year to $1.42 billion, beating expectations for $1.39 billion.
The professional segments' revenue climbed 9.1% to $1.11 billion in the second quarter, boosted by price gains and the Tornado Infrastructure Equipment acquisition, as well as increased demand of underground construction equipment and zero-turn mowers.
Toro completed the acquisition of vacuum truck manufacturer Tornado in December.
Residential sales increased 4.4% to $310.4 million, weighed down by lower shipments of in snow products.
Shares of Toro rose 0.8% intraday Thursday, giving up gains from earlier in the day. The stock is up nearly 17% so far this year.
Price: $91.53, Change: $+0.58, Percent Change: +0.63%
