Toro (US:TORO) ZACKSยท2024-12-19 14:10Core Insights - The Toro Company reported fourth-quarter fiscal 2024 results with both revenues and earnings falling short of the Zacks Consensus Estimate, although both metrics improved compared to the same quarter last year [1][4][5] Financial Performance - Adjusted earnings were reported at 95 cents per share, slightly below the consensus estimate of 96 cents, but up from 71 cents in the prior year [4] - Net sales reached $1,076 million, missing the consensus estimate of $1,086 million, but reflecting a 9.4% increase year-over-year [5] - Adjusted gross profit increased by 5.1% year-over-year to $347.8 million, while gross margin contracted by 130 basis points to 32.3% due to rising costs [6] - SG&A expenses improved by 2.1% year-over-year to $240 million, with a decrease in this metric as a percentage of net sales by 160 basis points to 22.3% [7] - Adjusted operating earnings were $117 million, compared to $99.5 million in the same quarter last year, with an adjusted operating margin of 10.9%, up 80 basis points year-over-year [8] Segment Performance - Professional segment net sales were $913.9 million, a 10.3% increase from $828.9 million in the prior year, driven by higher shipments of golf and grounds products [9] - Residential segment net sales reached $155.1 million, a 4.5% increase from $148.4 million in the previous year, supported by greater shipments of lawn care products [10] Financial Position - As of the end of the fiscal fourth quarter, the company had cash and cash equivalents of $199.5 million, long-term debt of $911.8 million, and shareholders' equity of $1.55 billion [12] - Net inventories declined by 4.5% year-over-year, with net cash provided by operating activities at $569.9 million and free cash flow at $470.7 million [12] Future Outlook - For fiscal 2025, the company projects net sales growth of 0% to 1% and adjusted EPS between $4.25 and $4.40, supported by strong demand in underground construction and golf segments [13]