The Toro Company recently released its 10-Q report, providing a detailed look at its financial performance. The company, founded in 1914 and headquartered in Bloomington, Minnesota, operates in two segments: Professional and Residential. The Professional segment offers turf and landscape equipment products, rental and underground construction equipment, snow and ice management equipment, irrigation and lighting products, while the Residential segment provides walk power mowers, zero-turn riding mowers, snow throwers, and home solution products.
In the third quarter of fiscal 2024, Toro reported consolidated net sales of $1,156.9 million, up 6.9% from $1,081.8 million in the third quarter of fiscal 2023. For the first nine months of fiscal 2024, consolidated net sales were $3,507.8 million, a decrease of 1.7% compared to the same period in the prior fiscal year. The Professional segment's net sales for the third quarter of fiscal 2024 were $880.9 million, a decrease of 1.7% compared to the third quarter of the prior fiscal year. However, the Residential segment's net sales for the same period were $267.5 million, an increase of 52.6% compared to the third quarter of the prior fiscal year.
In terms of profitability, Toro reported net earnings of $119.3 million, or $1.14 per diluted share, for the third quarter of fiscal 2024, compared to a net loss of $15.0 million, or $0.14 net loss per diluted share, for the third quarter of fiscal 2023. For the first nine months of fiscal 2024, net earnings were $329.0 million, or $3.14 per diluted share, compared to $259.4 million, or $2.46 per diluted share, in the comparable fiscal 2023 period.
Toro also provided an overview of its non-GAAP financial measures, highlighting its purpose to help customers enrich the beauty, productivity, and sustainability of the land. The company emphasized its focus on alternative power, smart connected, and autonomous solutions, as well as efforts to address sustainability-focused matters, including environmental, social, and governance priorities, as disclosed in its most recent Sustainability Report.
Furthermore, Toro discussed its productivity initiative, the AMP initiative, which aims to result in annualized cost savings of at least $100 million by fiscal 2027. Additionally, the company addressed the impairment charges recorded in the third quarter of fiscal 2023 related to the Spartan trade name intangible asset and goodwill of the Intimidator reporting unit under the Professional segment.
The report also provided insights into the company's order backlog, field inventory levels, and the impact of macroeconomic factors on its operations, including the cautious approach from homeowners and dealers due to general consumer uncertainty, high interest rates, and the current geopolitical environment.
Following these announcements, the company's shares moved -10.1%, and are now trading at a price of $81.85. If you want to know more, read the company's complete 10-Q report here.
