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Toro (TTC) stock down as supply chain trims Q4 earnings

By Joyanta Acharjee

15:33, 15 December 2021

A Toro lawnmower
Toro makes outdoor equipment such as lawnmowers – Photo: Shutterstock

Toro (TTC) stock fell on Wednesday as the outdoor equipment maker reported a dip in profits due to “supply chain challenges and inflationary pressures” despite a 14% rise in revenue.

The company makes a variety of equipment including lawnmowers, sprinkler systems, drilling equipment and snow plows.

For its fiscal fourth quarter ended 31 October, net earnings fell to $60.1m (£45.47m) from the $72.2m reported a year earlier on net sales which rose to $960.7m from $841m reported in the fourth quarter 2020.

Beats estimates

Adjusted earnings of 56 cents beat analysts’ estimates of 53 cents on net sales of $956m, according to figures widely available on financial news sites.

On the NYSE, the stock opened up 5% on Wednesday at $103.40. As at 10:30 am EDT (UTC-5) the stock was down 2% at $99.77.

“We exceeded our top- and bottom-line guidance for fiscal 2021, driving double-digit net sales growth for both the quarter and full-year for our professional and residential segments,” Toro chair and CEO Richard M Olson said in a press release.


37,756.90 Price
-0.180% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


15,942.30 Price
-0.440% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8


0.61 Price
-1.030% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


2,036.98 Price
-0.430% 1D Chg, %
Long position overnight fee -0.0196%
Short position overnight fee 0.0114%
Overnight fee time 22:00 (UTC)
Spread 0.30

The company said professional sales grew 14% year-on-year while residential sales were up 20%.

Gross margin decline

Toro cited higher material and freight costs as the reason for a decline in gross margin, which fell to 30.1%, from 35.7%.

“As we enter the new fiscal year, we continue to see robust demand for our innovative products and remain focussed on serving our customers,” Olson added.

Looking ahead, for the current 2022 fiscal year Toro’s management expects net sales growth in the range of 8% to 10% and adjusted EPS in the range of $3.90 to $4.10 per share.

Read more: Playtech (PTEC) stock surges on bid war

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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