A Glimpse of Toro's Earnings Potential

Toro TTC is preparing to release its quarterly earnings on Thursday, 2025-06-05. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Toro to report an earnings per share (EPS) of $1.39.

Anticipation surrounds Toro's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.02, leading to a 1.27% drop in the share price the following trading session.

Here's a look at Toro's past performance and the resulting price change:

Performance of Toro Shares

Shares of Toro were trading at $76.67 as of June 03. Over the last 52-week period, shares are down 15.98%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Views on Toro

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Toro.

The consensus rating for Toro is Neutral, based on 3 analyst ratings. With an average one-year price target of $83.0, there's a potential 8.26% upside.

Comparing Ratings with Competitors

In this comparison, we explore the analyst ratings and average 1-year price targets of AGCO, Alamo Group and Lindsay, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for AGCO, with an average 1-year price target of $99.83, suggesting a potential 30.21% upside.
• Analysts currently favor an Buy trajectory for Alamo Group, with an average 1-year price target of $195.0, suggesting a potential 154.34% upside.
• Analysts currently favor an Neutral trajectory for Lindsay, with an average 1-year price target of $131.0, suggesting a potential 70.86% upside.

Snapshot: Peer Analysis

The peer analysis summary outlines pivotal metrics for AGCO, Alamo Group and Lindsay, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Toro ranks in the middle among its peers for consensus rating. It ranks at the bottom for revenue growth and gross profit, while it ranks at the top for return on equity.

Unveiling the Story Behind Toro

The Toro Co manufactures turf maintenance and landscaping equipment. The company produces reel and rotary riding products, trim cutting and walking mowers, greens rollers, turf sprayer equipment, underground irrigation systems, heavy-duty walk-behind mowers, and sprinkler systems used for professional turf and landscape maintenance and construction. Its products are marketed through a network of distributors and dealers to predominantly professional users maintaining turfs and sports fields such as golf courses. Its operating segments are Professional which generates a substantial part of its revenue, and Residential segment. The company also produces snow plowers and ice management products. Its key revenue generating market is the United States.

Financial Insights: Toro

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Toro faced challenges, resulting in a decline of approximately -0.69% in revenue growth as of 31 January, 2025. This signifies a reduction in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Toro's net margin is impressive, surpassing industry averages. With a net margin of 5.31%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Toro's ROE excels beyond industry benchmarks, reaching 3.5%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.45%, the company showcases effective utilization of assets.

Debt Management: Toro's debt-to-equity ratio is below the industry average at 0.83, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Toro visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.