TTC Toro 1Q Net Rose 15% On Strong Revenue; Raises Year View
PROVIDED BY Dow Jones & Company, Inc. - 8:53 AM 02/23/2012
DOW JONES NEWSWIRES
Toro Co.'s (TTC) fiscal first-quarter earnings rose 15% on stronger-than- expected revenue as both the professional and residential segments posted double-digit profit increases.
The grounds-care equipment maker raised its full-year earnings estimate to $ 4.20 a share on 6% to 7% revenue growth from its December forecast of $4.15 a share on revenue growth of 5%. Toro (TTC) also forecast current-quarter earnings of $ 2.10 a share, while analysts surveyed by Thomson Reuters expect $2.09.
The maker of landscaping equipment and snowblowers has seen its bottom line improve in recent quarters, led by revenue growth at its professional division, its largest segment. Demand for professional landscaping and irrigation equipment is recovering from the recession as new golf courses are developed, particularly in Asia.
For the quarter ended Feb. 3, Toro (TTC) reported a profit of $19.9 million, or 65 cents a share, up from $17.3 million, or 53 cents, a year earlier. Its December projection was 58 cents a share, below analysts' estimates at the time.
Revenue jumped 11% to $423.8 million, topping the most recent forecast of $403 million from analysts polled by Thomson Reuters.
Gross margin fell to 34.6% from 35.7%, due primarily to product mix and freight expense.
At the professional segment--which includes landscaping, golf and irrigation equipment--sales rose 9.9% and profit was up 11%.
The residential segment--which includes lawnmowers and snowblowers--saw a 12% sales increase and earnings jumped 11%.
Shares closed Wednesday at $63.80 and were inactive premarket. The stock has risen 5.2% so far this year.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@ dowjones.com
(END) Dow Jones Newswires
02-23-12 0853ET
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