Company Performance - Toro reported quarterly earnings of $1.42 per share, exceeding the Zacks Consensus Estimate of $1.38 per share, and showing a slight increase from $1.40 per share a year ago, representing an earnings surprise of 2.90% [1] - The company posted revenues of $1.32 billion for the quarter ended April 2025, which was below the Zacks Consensus Estimate by 1.94%, and a decrease from $1.35 billion in the same quarter last year [2] - Over the last four quarters, Toro has surpassed consensus EPS estimates two times but has not beaten revenue estimates during this period [2] Stock Outlook - Toro shares have declined approximately 5.6% since the beginning of the year, contrasting with the S&P 500's gain of 1.5% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the upcoming quarter at $1.23 on revenues of $1.15 billion, and for the current fiscal year at $4.30 on revenues of $4.62 billion [7] - The Zacks Rank for Toro is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Tools - Handheld industry, to which Toro belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Toro's stock performance [5]

Company Overview - Toro (TTC) is a Consumer Discretionary stock headquartered in Bloomington, with a year-to-date price change of -5.37% [3] - The company currently pays a dividend of $0.38 per share, resulting in a dividend yield of 2.01%, which is slightly below the Tools - Handheld industry's yield of 2.11% and the S&P 500's yield of 1.53% [3] Dividend Performance - Toro's annualized dividend of $1.52 has increased by 5.6% from the previous year [4] - Over the last five years, Toro has raised its dividend five times, achieving an average annual increase of 10.22% [4] - The company's current payout ratio is 36%, indicating that it distributes 36% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - Toro is expected to see earnings growth in the current fiscal year, with the Zacks Consensus Estimate for 2025 at $4.31 per share, reflecting a year-over-year growth rate of 3.36% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - While high-yielding stocks may face challenges during periods of rising interest rates, Toro is positioned as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]