Toro Missed Q4 Revenue Due To Supply Chain Constraints; Issues Cautious FY23 Outlook

Toro Co TTC reported fourth-quarter FY22 sales growth of 22% year-over-year to $1.17 billion, missing the consensus of $1.18 billion.

Here are the results:

• Adjusted EPS of $1.11 beat the consensus of $1.09.
• Sales by segments: Professional $944.7 million (+29% Y/Y), and Residential $223.5 million (-0.8% Y/Y).
• The adjusted gross margin expanded 400 bps to 34.1%.
• The adjusted operating margin grew 520 bps to 12.9%.
• The company held $188.3 million in cash and equivalents.

"In the fourth quarter, professional segment demand was broad-based. Our biggest constraint remained our ability to fulfill the heightened backlog of orders, given the current supply chain environment," CEO Richard Olson said. "For the residential segment, retail demand continued to normalize, reflecting more typical seasonal trends and weather patterns."

FY23 Outlook: Toro saw net sales of $4.831 billion - $4.966 billion, below the consensus of $4.990 billion.

It expects an adjusted EPS of $4.70 - $4.90 below the consensus of $4.97.

Price Action: TTC shares traded lower by 2.54% at $109.17 on the last check Wednesday.