Toro Beats Up on Analysts Yet Again
Toro (NYS: TTC) reported earnings on Feb. 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 3 (Q1), Toro beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share improved significantly.
Gross margins shrank, operating margins increased, and net margins improved.
Toro reported revenue of $423.8 million. The four analysts polled by S&P Capital IQ anticipated revenue of $402.1 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $383.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.65. The five earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.65 for Q1 were 23% higher than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.6%, 110 basis points worse than the prior-year quarter. Operating margin was 8.0%, 90 basis points better than the prior-year quarter. Net margin was 4.7%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $663.4 million. On the bottom line, the average EPS estimate is $2.08.
Next year's average estimate for revenue is $1.96 billion. The average EPS estimate is $4.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 170 members rating the stock outperform and 11 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Toro a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Toro is outperform, with an average price target of $65.60.
Over the decades, small-cap stocks, like Toro have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Toro to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.