Toro Co. had a strong spring quarter, with revenue topping $1 billion for the first time and profits that grew 44.4%. Encouraged by the results, the company is raising its guidance for the remainder of its fiscal year.
"We delivered record results in the quarter, with continued momentum across our professional and residential segments," said Toro Chief Executive Richard Olson in a news release. "Sales grew at a robust pace, and earnings grew at nearly twice the sales growth rate. "
The Bloomington-based company saw strong demand from the residential market for both snow blowers with late season storms and zero-turn riding mowers as the weather turned to spring. Strong demand from golf courses and landscape contractors drove better results for the professional segment.
For the second quarter ended April 30, Toro earned $142.2 million, or $1.31 per share. Comparisons were favorable due to the effects of the pandemic in the year-ago quarter, but earnings per share were also 22% ahead of the pre-pandemic second quarter of fiscal 2019.
Sales for the most recent quarter were $1.15 billion, up 23.6%. Sales from the professional segment up 25.3% to $828.4 million, and residential segment sales up 20.2% to $315 million.
Toro is still maintaining some pandemic precautions such as social distancing at factories, but officials said operations were getting more efficient and they were encouraged by strong demand from customers. Supply chain constraints and inflationary pressures may present challenges.
Toro now expects now expects net sales to grow 12% to 15% and adjusted earnings per share to be in the range of $3.45 to $3.55. That is up from the guidance issued at the end of their first quarter of sales increases of 6% to 8% and earnings per share between $3.35 and $3.45.
Sales and earnings in the second quarter both beat analyst expectations. Still, Toro's shares ended Thursday at $106.19, down 3.4%.