UPDATE: Toro Posts Upbeat FQ3 Results, Lifts FY14 Forecast

The Toro Company

reported better-than-expected earnings for the fiscal third quarter. The Bloomington, Minnesota-company posted quarterly net earnings of $50 million, or $0.87 per share, versus $40.1 million, or $0.68 per share, in the year-ago period. Its net sales rose 11.3% to $567.5 million from $509.9 million. However analysts were expecting earnings of $0.83 per share on revenue of $557.72 million. Professional segment net sales climbed 11.9% to $384.7 million, while residential segment net sales rose 13% to $175.7 million. Gross margin rose 70 basis points to 35.6%, while selling, general and administrative expense as a percent of sales declined 50 basis points to 22.9% in the quarter. At the end of the third quarter, accounts receivable rose 6.7% y/y to $215.6 million, while net inventories increased 13.5% to $293.8 million. Toro now expects FY14 earnings of $2.94 to 2.96 per share, versus its earlier forecast of $2.90 to $2.95 per share. Analysts expected earnings of $2.96 per share. It now projects revenue growth to be around 6%. Michael J. Hoffman, Toro's chairman and chief executive officer said, “After successfully managing through the challenges of a late spring, our quarterly results benefited from favorable summer growing conditions in key markets that, similar to last year, helped drive retail sales across most of our businesses.” Toro shares gained 1.78% to $62.34 at 11:20 a.m. ET.