)earnings increased 17% to $1.32 per share in the second quarter
of 2013 from $1.13 cents a share in the year-ago quarter. The
results were way ahead of the Zacks Consensus Estimate of $1.19.
Sales increased 1.9% year over year to $704 million in the
quarter, beating the Zacks Consensus Estimate of $700 million.
The year-over-year growth was led by improved market conditions
combined with new products and solid execution, fueled shipment
growth, offset by adverse weather condition resulting in the
delay of residential shipments.
Cost of sales declined to $452 million in the reported quarter
compared with $456 million in the year-ago quarter. Gross profit
improved 7% to $252 million from the prior-year quarter. Gross
margin expanded 180 basis points (bps) year over year to 35.8% in
the quarter, due to segment mix along with productivity gains and
selective price increases.
Selling, general, and administrative expense increased 4.5% to
$134.8 million in the quarter, driven by higher warehousing
expense, incremental costs from acquisitions, increased
engineering spending and higher health insurance costs. Operating
profit improved 10% to $117 million in the quarter from $106.5
million in the prior-year quarter. Consequently, operating margin
expanded 130 bps year over year to 16.7%.
Net sales at the segment increased 8.9% to $496 million in the
quarter, primarily due to increased shipments of landscape
contractor equipment and incremental sales from the Stone
acquisition. The growth was also driven by a rise in sales of
rental and construction equipment and hike in global golf
equipment sales based on improved budgets and customer demand.
Professional segment posted earnings of $112.3 million, up 13.8%
from the prior year period.
The segment reported sales of $201 million in the reported
quarter, dropped 13% year over year, affected by unfavorable
weather condition which had a negative impact on the sales of
walk power mowers and riding products. Consequently, residential
segment recorded earnings of $24.7 million for the second
quarter, down 13.5% from the prior year quarter.
Cash and cash equivalents were $80 million as of May 3, 2013
compared with $82.5 million as of May 4, 2012. Cash flow from
operating activities was $36.6 million in the reported quarter
compared with $89.5 million in the prior-year quarter.
Long-term debt amounted to $223.5 million as of May 3, 2013,
compared with $223.7 million as of May 4, 2012. The
debt-to-capitalization ratio contracted to 37.4% as of May 3,
2013 from 42% as of May 4, 2012.
Toro revised its revenue growth expectation for fiscal 2013 in
the range of 3% to 4% from the previous range of 4% to 5%.
However, the company is maintaining its earnings outlook in the
band of $2.40 to $2.45 per share, based on the strength of
productivity gains and favorable commodity trends, partly offset
by anticipated pressures from mix and manufacturing utilization.
Bloomington, Minn-based Toro Co. is a worldwide provider of turf
and landscape maintenance equipment, and irrigation solutions to
help customers care for golf courses, sports fields, public green
spaces, commercial and residential properties, and agricultural
fields. The company operates through its two segments -
Professional and Residential.
Toro Co. currently retains a short-term Zacks Rank #3 (Hold).
Lincoln Electric Holdings Inc.
) reported first-quarter 2013 adjusted earnings of 92 cents per
share, up 21% from 76 cents earned in the year-earlier quarter
and way ahead of the Zacks Consensus Estimate of 78 cents.
) reported first quarter 2013 earnings per share of $1.40, 4.5%
higher than the Zacks Consensus Estimate of $1.34 and 15.7%,
above the prior-year quarter's earnings of $1.21.
Driven by higher sales of farm machinery,
Deere & Company
) reported record second quarter fiscal 2013 earnings of $2.76
per share compared with $2.61 per share earned in the prior-year
quarter. Reported earnings per share were ahead of the Zacks
Consensus Estimate of $2.74 per share.
DEERE & CO (DE): Free Stock Analysis
LINCOLN ELECTRC (LECO): Free Stock Analysis
SNAP-ON INC (SNA): Free Stock Analysis Report
TORO CO (TTC): Free Stock Analysis Report
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