Northland Capmk Issues Pessimistic Outlook for Toro Earnings

Key Points

• Northland Capital Markets has reduced its FY2025 earnings per share forecast for Toro Company from $4.23 to $4.15, maintaining a "Hold" rating on the stock.
• Toro reported Q3 earnings of $1.24 per share, exceeding expectations but showing a 2.2% decline in revenue year-over-year, with current full-year earnings expected at $4.41 per share.
• Analysts have varied ratings for Toro, with several raising price targets, resulting in a consensus rating of "Moderate Buy" and an average price target of $92.60.

Toro Company (The) (NYSE:TTC - Free Report) - Stock analysts at Northland Capmk dropped their FY2025 earnings per share estimates for shares of Toro in a research report issued to clients and investors on Tuesday, September 9th. Northland Capmk analyst E. Jackson now forecasts that the company will post earnings per share of $4.15 for the year, down from their previous estimate of $4.23. Northland Capmk currently has a "Hold" rating on the stock. The consensus estimate for Toro's current full-year earnings is $4.41 per share. Northland Capmk also issued estimates for Toro's Q4 2025 earnings at $0.86 EPS, Q1 2026 earnings at $0.93 EPS, Q3 2026 earnings at $1.23 EPS, Q4 2026 earnings at $1.07 EPS, FY2027 earnings at $4.87 EPS and FY2028 earnings at $5.06 EPS.

Toro (NYSE:TTC - Get Free Report) last announced its quarterly earnings data on Thursday, September 4th. The company reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.22 by $0.02. The business had revenue of $1.13 billion during the quarter, compared to analysts' expectations of $1.16 billion. Toro had a return on equity of 28.98% and a net margin of 7.37%.The business's quarterly revenue was down 2.2% compared to the same quarter last year. During the same quarter last year, the business posted $1.18 EPS. Toro has set its FY 2025 guidance at 4.150-4.150 EPS.

Several other equities research analysts have also commented on TTC. Raymond James Financial cut their price target on shares of Toro from $95.00 to $90.00 and set an "outperform" rating on the stock in a research note on Friday, June 6th. Robert W. Baird boosted their target price on Toro from $82.00 to $86.00 and gave the company a "neutral" rating in a report on Friday, September 5th. Northland Securities boosted their target price on Toro from $80.00 to $90.00 and gave the company a "market perform" rating in a report on Tuesday. DA Davidson boosted their target price on Toro from $93.00 to $97.00 and gave the company a "buy" rating in a report on Friday, September 5th. Finally, Longbow Research raised Toro from a "neutral" rating to a "buy" rating and set a $100.00 target price on the stock in a report on Monday, August 25th. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $92.60.

Toro Price Performance

Shares of NYSE TTC opened at $78.78 on Wednesday. The firm has a market capitalization of $7.71 billion, a PE ratio of 23.87 and a beta of 0.80. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.79 and a current ratio of 1.88. Toro has a fifty-two week low of $62.34 and a fifty-two week high of $89.50. The stock's 50-day simple moving average is $76.41 and its 200-day simple moving average is $73.58.

Insiders Place Their Bets

In related news, VP Kurt D. Svendsen sold 6,000 shares of the company's stock in a transaction on Thursday, June 26th. The stock was sold at an average price of $70.99, for a total transaction of $425,940.00. Following the transaction, the vice president owned 11,646 shares of the company's stock, valued at $826,749.54. This represents a 34.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.39% of the stock is owned by corporate insiders.

Institutional Trading of Toro

A number of institutional investors have recently bought and sold shares of TTC. AQR Capital Management LLC boosted its position in Toro by 1,184.6% during the first quarter. AQR Capital Management LLC now owns 1,963,253 shares of the company's stock worth $142,827,000 after purchasing an additional 1,810,429 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC lifted its position in shares of Toro by 16.4% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 8,187,609 shares of the company's stock valued at $595,649,000 after acquiring an additional 1,156,314 shares in the last quarter. Boston Trust Walden Corp lifted its position in shares of Toro by 133.3% in the first quarter. Boston Trust Walden Corp now owns 779,419 shares of the company's stock valued at $56,703,000 after acquiring an additional 445,287 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Toro by 39.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,534,760 shares of the company's stock valued at $111,654,000 after acquiring an additional 434,257 shares in the last quarter. Finally, Ameriprise Financial Inc. lifted its position in shares of Toro by 172.9% in the fourth quarter. Ameriprise Financial Inc. now owns 368,368 shares of the company's stock valued at $29,508,000 after acquiring an additional 233,397 shares in the last quarter. 87.95% of the stock is currently owned by hedge funds and other institutional investors.

About Toro

The Toro Company designs, manufactures, markets, and sells professional turf maintenance equipment and services. It operates through two segments: Professional and Residential. The Professional segment offers turf and landscape equipment products, including sports fields and grounds mowing and maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, and other maintenance equipment; rental, specialty, and underground construction equipment, such as horizontal directional drills, walk and ride trenchers, stand-on skid steers, vacuum excavators, stump grinders, turf renovation products, asset locators, pipe rehabilitation solutions, materials handling equipment, and other after-market tools; and snow and ice management equipment, such as snowplows, as well as stand-on snow and ice removal equipment, such as snowplow, snow brush, and snow thrower attachments, salt and sand spreaders, and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders.

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