Toro (TTC) stock down as supply chain trims Q4 earnings
15:33, 15 December 2021
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.
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.
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