Toro stock gains after profit and revenue rise above expectations, and outlook lifted

Shares of Toro Co. rose 0.6% in premarket trading Thursday, after the lawn care equipment company reported fiscal third-quarter profit and sales that rose above expectations, as strength in the residential business helped offset a miss in professional, and raised its full-year outlook as strong demand was expected to offset continued supply chain, inflation and labor pressures. Net income for the quarter to July 30 rose to $96.3 million, or 89 cents a share, from $89.0 million, or 82 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to 92 cents, above the FactSet consensus of 78 cents. Sales increased 16.2% to $976.8 million, beating the FactSet consensus of $954.7 million. Professional sales grew 15.2% to $718.5 million, missing the FactSet consensus of $723.1 million, while Residential sales rose 23.0% to $252.1 million to top expectations of $236.2 million. Gross margin fell to 33.9% from 35.0%. For fiscal 2021, the company raised its adjusted EPS guidance range to $3.53 to $3.57 from $3.45 to $3.55 and lifted its sales growth outlook to 17% from 12% to 15%. The stock has slipped 1.3% over the past three months through Wednesday, while the S&P 500 has gained 7.5%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Toro stock gains after profit and revenue rise above expectations, and outlook lifted
Shares of Toro Co. rose 0.6% in premarket trading Thursday, after the lawn care equipment company reported fiscal third-quarter profit and sales that rose above expectations, as strength in the residential business helped offset a miss in professional, and raised its full-year outlook as strong demand was expected to offset continued supply chain, inflation and labor pressures. Net income for the quarter to July 30 rose to $96.3 million, or 89 cents a share, from $89.0 million, or 82 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to 92 cents, above the FactSet consensus of 78 cents. Sales increased 16.2% to $976.8 million, beating the FactSet consensus of $954.7 million. Professional sales grew 15.2% to $718.5 million, missing the FactSet consensus of $723.1 million, while Residential sales rose 23.0% to $252.1 million to top expectations of $236.2 million. Gross margin fell to 33.9% from 35.0%. For fiscal 2021, the company raised its adjusted EPS guidance range to $3.53 to $3.57 from $3.45 to $3.55 and lifted its sales growth outlook to 17% from 12% to 15%. The stock has slipped 1.3% over the past three months through Wednesday, while the S&P 500 has gained 7.5%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.