Year-End Results Up, Expectations Down For Toro
The Toro Company beat Wall Street’s estimates for fiscal year 2014, but sounded a word of caution as it enters fiscal 2015.
The Bloomington-based lawn care company reported net earnings of $173.9 million for the fiscal year ending Oct. 31. For the fourth quarter, which ended at the same time, earnings were $10.9 million or 19 cents per share. Analysts were expecting around 16 cents per share, according to Zacks Investment Research.
Despite the positive news, the company lowered profit expectations for the current quarter to 47 cents per share. The Star Tribune reports that analysts expected 54 cents per share.
“Fiscal 2014 was a significant year for The Toro Company for many reasons,” CEO Michael Hoffman said in a statement, noting record sales and earnings, celebrating the company’s centennial and closing its acquisition of the Iron Mountain, Michigan-based snow plow maker BOSS.
That $227 million acquisition—the largest for the company to date—marks a push for Toro to balance its portfolio that relies heavily on fair-weather conditions to include more winter products. Even without the BOSS acquisition, the company reported robust sales in snow management thanks to “abundant snow conditions” during early 2014 in North America.
By midday, Toro’s stock had fallen slightly on news of the results to $65.19 per share.