The Toro Company (NYSE:TTC) Q4 Earnings Overview

• Earnings Per Share (EPS) of $0.95 met market expectations.
• Revenue of approximately $1.08 billion, slightly below the estimated $1.09 billion.
• Despite record net sales, weak guidance and a challenging economic environment impacted TTC's performance.

The Toro Company (NYSE:TTC) is a renowned manufacturer of outdoor equipment, including lawnmowers and snowblowers. On December 18, 2024, TTC reported its earnings for the fourth quarter, revealing an earnings per share (EPS) of $0.95, which aligned with market expectations. However, the company generated revenue of approximately $1.08 billion, slightly missing the estimated $1.09 billion.

During the Q4 2024 earnings call, key company figures like CEO Richard Olson and CFO Angela Drake discussed the financial results. Despite record net sales for the quarter and fiscal year, the company's share price declined. This was due to missing sales estimates and issuing weak guidance, as highlighted by Seeking Alpha. The challenging economic environment has impacted TTC's performance.

TTC's financial metrics provide a deeper understanding of its market position. With a price-to-earnings (P/E) ratio of 19.97, the market values TTC's earnings moderately. The price-to-sales ratio of 1.82 indicates investor willingness to pay for each dollar of sales. The enterprise value to sales ratio of 2.00 reflects the company's total valuation relative to its sales.

The company's financial health is further illustrated by its debt-to-equity ratio of 0.65, showing a moderate level of debt compared to equity. A current ratio of 1.81 suggests TTC's ability to cover short-term liabilities with short-term assets. These metrics indicate a stable financial position, despite the recent challenges in meeting revenue expectations.