Strong sales of residential products and rebounding business confidence in the professional segment helped the Toro Co. report strong fourth quarter and year-end financial results.
For the fourth quarter ended Oct. 31 the Bloomington-based company earned $72.2 million, or 66 cents per share, up 89% from the fourth quarter last year. Adjusted net earnings were $69.2 million, or 64 cents per share, up 33%.
Sales for the quarter increased 14.5% to $814 million, pushing yearly sales to $3.38 billion and 7.7% annual growth. Adjusted net earnings for the year increased 1.1% for the year to $327.7 million while adjusted EPS increased 2 cents to $3.02 per share.
“Our strong fourth-quarter results were driven by continued sales growth in our residential segment and a rebound in our professional segment,” said Richard Olson, chairman and chief executive, in a news release.
Sales and earnings for both the fourth quarter and year exceeded analysts’ expectations.
Strong demand for walk power and zero-turn riding lawn mowers helped the residential segment increase sales 38.5% in the quarter to $187.9 million. New product introductions in the segment and homeowners renewed focus on home improvements helped drive the sales.
The residential segments earnings in the quarter also increase 90.2% to $26.4 million.
The larger professional segment reported revenue of $644 million, up 9.5% from the year ago quarter. Earnings in the segment were $104.2 million, up 70.2%.
The company said the professional segment’s results were aided by the company’s recent acquisitions, the $700 million acquisition of Charles Machine Works in 2019 and the $168 million acquisition of Venture Products Inc. earlier this year.
Toro did offer guidance for their new fiscal year saying they expect sales to increase 6% to 8% and adjusted EPS in the $3.35 to $3.45 per share range for fiscal 2021 but did caution that there continues to be considerable uncertainty due to COVID-19.
Shares of Toro were trading at $92.23 per share, down slightly in Wednesday morning trading. Over the last 52 weeks Toro’s shares have traded in the rage of $52.07 to $93.15 per share.
Patrick Kennedy • 612-673-7926