Toro Announces Stock Split; Beats Profit Expectations But Misses On Sales

Toro Co. reported Thursday fiscal third-quarter earnings that beat expectations but sales that missed, and announced a 2-for-1 stock split. The stock split announcement, which will go into effect on Sept. 16, comes three days after the stock's record close of $94.88 on Monday. For the quarter ended July 29, the lawn care equipment maker said earnings rose $55.8 million, or $1.00 a share, from $53.3 million, or 94 cents a share, in the same period a year ago. The FactSet earnings-per-share consensus was 99 cents. Revenue fell to $601.0 million from $609.6 million, missing the FactSet consensus of $623.1 million, as professional and residential segment sales both missed expectations. The company narrowed its full-year EPS outlook to a range of $3.95 to $4.00 from $3.90 to $4.00. "We performed well despite sluggish sales in certain regions that experienced challenging weather conditions," said Chief Executive Michael Hoffman. The stock, which was still inactive in premarket trade, has soared 28% year to date, while the S&P 500 has gained 6.8%.