The Toro Company has reported results for its fiscal second-quarter ended April 29, 2022, highlighted by an 8.7 percent increase in net sales.
The company has also raised its full year fiscal 2022 guidance.
Q2 fiscal 2022 financial highlights
- Net sales of $1.25 billion, up 8.7 percent from $1.15 billion in the second quarter of fiscal 2021.
- Net earnings of $131.1 million, down 7.8 percent from $142.2 million in the second quarter of fiscal 2021; *adjusted net earnings of $132.1 million, down 5.8 percent from $140.3 million in the second quarter of fiscal 2021.
- Reported EPS of $1.24 per diluted share versus $1.31 per diluted share in the second quarter of fiscal 2021; *adjusted EPS of $1.25 per diluted share versus $1.29 per diluted share in the second quarter of fiscal 2021.
“We delivered on our expectations for the second quarter, extending our long track record of consistent financial performance and building an increasingly strong foundation for the future,” said Richard M. Olson, chairman and CEO. “Our top-line growth was driven by continued strength in demand, net price realization and our ability to produce in what remains a highly dynamic operating environment. Our organizational flexibility and resiliency helped us achieve these results, and we are well-positioned to emerge as a more efficient and agile company. Based on our operational progress, we have gained confidence heading into the remainder of the year, and as a result have increased guidance.
“Our commitment to innovation and technology leadership is a cornerstone of our strategy,” Olson said. “Last week, we announced our next generation autonomous, battery-powered, mower for today’s busy homeowners. This robotic mower further extends our Toro Smart Yard offerings, with easy, wire-free set-up and a patented, industry-first, vision-based navigation system. This follows the recent introduction of our new autonomous fairway mower, which leverages our proprietary GeoLink Solutions technologies.
"Meanwhile, our integration of the Intimidator Group is off to a great start. Beyond adding the complementary Spartan line of professional zero-turn mowers, we have an excellent opportunity to leverage our combined resources to provide unparalleled products, technologies and services to customers. Finally, we remain focused on sustainability, which is fundamental to our enterprise strategic priorities. The upcoming edition of our sustainability report will introduce goals and metrics that will help us continue to drive change in a meaningful way for all stakeholders.”
Year-to-date fiscal 2022 financial highlights
- Net sales of $2,182.1 million, up 7.9 percent from $2,022.1 million in the same prior-year period.
- Net earnings of $200.6 million, down 20.8 percent from $253.5 million in the same prior-year period; *adjusted net earnings of $201.8 million, down 13.6 percent from $233.5 million in the first six months of fiscal 2021.
- Reported EPS of $1.89 per diluted share versus $2.32 per diluted share in the same prior-year period; *adjusted EPS of $1.91 per diluted share versus $2.14 per diluted share in the first six months of fiscal 2021.
Outlook
“Our team is sharply focused on supporting our customers, enterprise-wide operational execution, and investing for the long term,” continued Olson. “As we enter the second half of the fiscal year, demand for our innovative line-up of products remains strong. In the near-term, our ability to meet the elevated demand continues to be impacted by the global supply chain environment. Taking these factors into account, along with our operational actions and positive momentum, we are raising our full year outlook.
“Importantly, we continue to bring new products to market that meet customers’ current and future needs, driven by our strategic investments in the key technology areas of alternative power, smart-connected and autonomous solutions. Helping our customers increase productivity and efficiency, address labor challenges, and support sustainability has long been a focus and serves as a key growth driver for our business. We believe this focus, coupled with our deep relationships, extensive distribution networks and disciplined execution, will enhance our leadership in our attractive and resilient end markets. We remain well-positioned to capitalize on growth opportunities and continue delivering on our commitments to all stakeholders.”
The company is raising its full-year fiscal 2022 guidance, and now expects total net sales growth in the range of 14 to 16 percent and *adjusted EPS in the range of $4.00 to $4.15 per diluted share. This guidance is based on management’s current visibility in what continues to be a dynamic macro environment, and reflects expectations for ongoing strength in demand and operational execution, as well as modest accretion from the Intimidator Group acquisition.
*Non-GAAP financial measure.
Source: Toro
