) hit a new 52-week high of $64.37 during yesterday's trading
session before closing lower at $63.38. The Bloomington,
Minn.-based worldwide provider of turf and landscape maintenance
equipment, and irrigation solutions has delivered a one-year
return of about 45.25%, outperforming the S&P 500.
Over the past 52 weeks, Toro's share price has ranged from a
52-week low of $42.69 on Jan 28, 2013 to a 52 week high on Jan 6,
2014. Average volume of shares traded over the last three months
is approximately 156K.
What's Driving Toro Upward?
Toro shares have been on the rise following its strong fourth
quarter and record fiscal 2013 results that were declared on Dec
6. Toro posted earnings of 8 cents per share in the quarter
against break-even results in the prior-year period, benefiting
from an improved market demand and favorable commodity prices.
Fiscal 2013 was a record year for Toro in terms of revenues,
operating earnings and earnings per share. The company posted
earnings of $2.62 per share for fiscal 2013, up 22.4% from the
year-ago earnings of $2.14. This was driven by introduction of
the Tier 4 diesel engine transition and acquisitions in the
rental and construction markets.
Earnings beat the Zacks Consensus Estimate in both the fourth
quarter and fiscal 2013. In fact, the company has delivered
consecutive earnings beat in the last four quarters, averaging a
surprise of 84.70%.
Toro expects revenues to grow about 4%-5% in fiscal 2014. Net
earnings for the year will be in the range of $2.85-$2.90 per
share. This will be driven by introduction of innovative products
and services, continued focus on returning value to shareholders
and acquisition opportunities to drive profitable growth.
For the first quarter of 2014, Toro expects net earnings to be
about 35 cents per share. According to the company, golf course
development is progressing, housing and construction continues to
improve and customers are seeking more efficient methods of
irrigation around the world.
Furthermore, Toro is well positioned to benefit from recent
investments in micro irrigation business; thus facilitating the
expansion of its global footprint. Rental and construction market
presence are also yielding positive results and will continue to
Other Stocks to Consider
Toro currently carries a short-term Zacks Rank #3 (Hold).
Some better-ranked stocks in same sector include
Alamo Group, Inc.
). While Kubota holds a Zacks Rank #1 (Strong Buy), Alamo and
Lindsay hold a Rank #2 (Buy).
ALAMO GROUP INC (ALG): Free Stock Analysis
KUBOTA CORP ADR (KUBTY): Get Free Report
LINDSAY CORP (LNN): Free Stock Analysis
TORO CO (TTC): Free Stock Analysis Report
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