The Toro Company (TTC) is set to report fourth-quarter earnings before Wednesday's opening bell, and the numbers aren't looking particularly cheerful compared to last year.
Analysts are calling for earnings of 88 cents per share for the Bloomington, Minnesota-based company, a drop from 95 cents per share in the same quarter last year. Revenue estimates tell a similar story, with the consensus sitting at $1.05 billion compared to $1.08 billion a year earlier.
Not exactly the growth trajectory investors dream about, but Toro is trying to sweeten things for shareholders in other ways. On December 9, the company gave itself permission to buy back up to 6 million additional shares and increased its quarterly dividend from 38 cents to 39 cents per share. Small moves, but they signal management's confidence in the business despite the near-term softness.
Toro shares closed at $73.99 on Friday, down just 0.1% for the session.
What the Smart Money Is Saying
Looking at how analysts with strong track records have positioned themselves recently offers some clues about where this stock might be headed. Here's the breakdown:
Northland Capital Markets analyst Ted Jackson kept his Market Perform rating in place back in September but raised his price target from $80 to $90. Jackson has a 57% accuracy rate on his calls.
DA Davidson's Michael Shilsky, also sporting a 56% accuracy rate, maintained a Buy rating and lifted his target from $93 to $97 on September 5. He's clearly more optimistic about Toro's prospects than some of his peers.
Timothy Wojs at Baird stuck with a Neutral rating while bumping his price target from $82 to $86, also on September 5. His accuracy rate comes in at 57%.
Raymond James analyst Sam Darkatsh stands out with an impressive 74% accuracy rate. He maintained an Outperform rating but actually trimmed his price target from $95 to $90 back in June, suggesting he saw some headwinds coming.
Then there's the oddball in the bunch: BTIG's Robert Drbul initiated coverage in October with a Buy rating and a $1,115 price target. That number looks like a typo compared to everyone else's targets in the $80-$90 range, but it's worth noting that Drbul has a solid 66% accuracy rate.
With earnings just days away, investors will finally get to see whether the company can beat these muted expectations or if the lawn and landscape equipment maker has more challenges to work through.
