) earnings increased 1.5% to 68 cents per share in the third
quarter of fiscal 2013 from 67 cents in the year-ago quarter. The
results were ahead of the Zacks Consensus Estimate of 65 cents.
The results benefited from the improved market condition and
increased demand for residential and landscape contractor
DEERE & CO (DE): Free Stock Analysis
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TORO CO (TTC): Free Stock Analysis Report
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Sales grew 1.2% year over year to $509.9 million in the quarter,
but missed the Zacks Consensus Estimate of $515 million. The
year-over-year growth was led by favorable weather conditions
resulting in increase improved retail sales particularly in the
Cost of sales increased to $332 million from $325 million in the
year-ago quarter. Gross profit remained flat year over year at
$178 million. Gross margin contracted 40 basis points (bps) year
over year to 34.9%, due to product mix, partly offset by
favorable commodity costs, productivity gains and pricing.
Selling, general, and administrative expense rose 1.9% year over
year to $119.4 million due to higher warehousing expense,
incremental costs from acquisitions, increased engineering
spending, partly compensated by lower warranty expense. Operating
profit fell 3.9% to $58.5 million from $60.9 million in the
prior-year quarter. Consequently, operating margin contracted 60
bps year over year to 11.5%.
: Net sales at the segment declined 4.8% year over year to $343.9
million, primarily from moving traditional third quarter sales
forward to the first quarter of the year due to the Tier 4 diesel
engine transition. This was partly offset by favorable weather
conditions and new product offerings. The growth was also driven
by a rise in sales of rental and construction equipment based on
improved demand. Professional segment posted earnings of $60.5
million, down 14.2% from the prior-year quarter.
: The segment reported sales of $155.5 million, up 14.4% year
over year, attributable to favorable weather conditions which had
a positive impact on the sales of all summer products, including
riding products, walk power mowers, handheld trimmer and blower.
Consequently, the residential segment recorded earnings of $15.1
million, up 50% from the prior-year quarter.
Cash and cash equivalents were $161 million as of Aug 2, 2013
compared with $143 million as of Aug 3, 2012. Cash flow from
operating activities was $121.4 million in the third quarter
compared with $75.9 million in the prior-year quarter.
Long-term debt amounted to $223.5 million as of Aug 2, 2013,
compared with $225 million as of Aug 3, 2012. The
debt-to-capitalization ratio contracted to 37% as of Aug 2, 2013
from 40% as of Aug 3, 2012.
Toro revised its revenue growth expectation for fiscal 2013 to
around 4% from the previous range of 3% to 4%. The company also
modified its earnings outlook to about 2.55 per share from the
prior band of $2.40 to $2.45 per share, based on the strength of
margin improvement. Toro expected gross margin to be up about 100
basis points year over year for the overall business.
Capital expenditures are expected at about $55 million at the end
of the year. The company expects to spend a similar amount for
the year on share repurchases as in 2012. The outlook for
professional rental and construction businesses remains strong
for the balance of the year.
Toro continues to see growth opportunities through the ongoing
introduction of innovative products and increased focus on
markets like municipal and sports fields. New underground product
portfolio is well positioned to grow in international markets.
However, foreign exchange volatility and social and political
unrest remain headwinds.
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 second-quarter adjusted earnings of 91 cents per
share, up 12% from 81 cents in the year-earlier quarter and
slivered past the Zacks Consensus Estimate by a penny.
) reported second quarter earnings per share of $1.50, beating
the Zacks Consensus Estimate of $1.43 by 4.9% and
increasing 15.4% from the prior-year quarter's earnings of $1.30.
Deere & Company
) reported record third quarter fiscal 2013 (ended Jul 31, 2013)
earnings of $996.5 million or $2.56 per share, up roughly 26%
from $788 million or $1.98 per share earned in the prior-year
quarter. The results were ahead of the Zacks Consensus Estimate