Toro Corp.’s stock (TORO, +2.00%) showed a promising increase of 3.5% during premarket trading on Wednesday following the release of its fourth-quarter financial report. The lawn mower company reported a net income of $70.3 million, or 67 cents a share, for the fourth quarter, marking a 40% decline compared to $117.6 million, or $1.12 a share, in the year-ago quarter.
However, the good news came in the form of adjusted fourth-quarter profit, which stood at 71 cents a share, surpassing the FactSet consensus estimate of 56 cents a share. Additionally, despite a 16% decrease in sales to $983.2 million, Toro managed to outperform analysts’ predictions of $973.3 million.
The company attributed this better-than-expected performance to the robust performance of its underground and specialty construction, as well as golf and grounds businesses. These divisions helped offset the significant decline in homeowner demand that was observed year-over-year.
Looking ahead, Toro is optimistic about its future as it anticipates an adjusted profit for 2024 within the range of $4.25 to $4.35 per share. This exceeds the FactSet consensus estimate of $4.30 per share. The company also credits its success to the swift actions it took to align production and costs with the current market conditions.
In conclusion, Toro Corp.’s stock surge reflects the company’s impressive fourth-quarter results, which surpassed analyst estimates. Despite challenges in the homeowner market, Toro remains confident in its ability to deliver strong financial performance and maintain its position as an industry leader.