Toro Analysts Cut Their Forecasts After Q2 Results

Core Insights - The Toro Company reported mixed results for Q2 FY2025, with sales declining 2% year-over-year to $1.32 billion, missing the consensus estimate of $1.35 billion, while adjusted EPS of $1.42 increased by 1% year-over-year, surpassing the consensus of $1.40 [1][2] Financial Performance - Q2 FY2025 sales: $1.32 billion, down 2% Y/Y, below consensus of $1.35 billion [1] - Adjusted EPS: $1.42, up 1% Y/Y, above consensus of $1.40 [1] Guidance Update - FY25 adjusted EPS guidance lowered from $4.25-$4.40 to $4.15-$4.30, compared to consensus of $4.31 [2] - FY25 net sales growth outlook revised to flat to -3%, down from 0% to 1% previously [2] Management Commentary - CEO Richard M. Olson emphasized the company's strategic steps to navigate near-term challenges, highlighting confidence in managing controllable factors and mitigating macroeconomic risks [3] Market Reaction - Toro shares fell 6.5% to $68.51 following the earnings announcement [3] Analyst Ratings and Price Targets - Baird analyst Timothy Wojs maintained a Neutral rating, lowering the price target from $85 to $82 [8] - Northland Capital Markets analyst Ted Jackson downgraded Toro from Outperform to Market Perform, reducing the price target from $100 to $80 [8] - Raymond James analyst Sam Darkatsh maintained an Outperform rating, lowering the price target from $95 to $90 [8]