Q3 2024 Toro Co Earnings Call Transcript
Key Points
- The Toro Co (TTC) delivered a nearly 7% increase in net sales to $1.16 billion for the third quarter.
- Residential segment grew 53%, driven by increased shipments to the mass channel and the strategic addition of Lowe's.
- Adjusted diluted earnings per share increased by 24% to $1.18, reflecting productivity and manufacturing efficiencies.
- Free cash flow improved substantially compared to last year, indicating disciplined execution and focus on working capital.
- The company remains on track to deliver at least $100 million of annualized run rate savings by fiscal 2027 from its AMP initiative.
- Lower shipments of snow and ice management products and contractor-grade zero-turn mowers due to elevated field inventories.
- Increased caution from homeowners and dealers, driven by macro factors such as high interest rates and geopolitical environment, led to lower-than-expected shipments of lawn care products.
- Professional segment net sales decreased by 1.7% year over year, primarily due to lower shipments of certain products.
- Higher material and manufacturing costs partially offset productivity improvements and net price realization.
- The company revised its full-year fiscal '24 guidance downward, reflecting increased caution in homeowner-facing markets.
Good day, ladies and gentlemen, and welcome to The Toro Company's third-quarter earnings conference Call. My name is Towanda, and I will be your coordinator for today. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
I would now like to turn the presentation over to your host for today's conference, Julie Kerekes, Treasurer and Senior Managing Director of Global Tax and Investor Relations. You may begin.
Thank you, and good morning, everyone. Our earnings release was issued this morning and a copy can be found in the Investor Information section of our corporate website, thetorocompany.com. We have also posted a third-quarter earnings presentation to supplement our earnings release. On our call today are Rick Olson, Chairman and Chief Executive Officer; Angie Drake, Vice President and Chief Financial Officer; and Jeremy Steffen, Director of Investor Relations.
During this call, we will make forward-looking
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