Toro Company cuts FY23 EPS view to $4.05-$4.10 from $4.70-$4.80

Consensus $4.79. “As we look ahead, we have and are taking appropriate actions to further align costs and production to demand trends that we expect will continue into fiscal 2024,” continued Olson. “We believe the combination of macro dynamics and weather patterns this year has exacerbated the rebalancing of homeowner demand for lawn care solutions in both of our residential and professional segments, which has resulted in elevated dealer field inventories of those products, along with higher floorplanning expense than originally anticipated. At the same time, we expect continued strength in demand and substantial order backlog for our underground and specialty construction, and golf and grounds solutions. As the supply chain for those products further stabilizes, we intend to leverage our existing manufacturing footprint to implement incremental, flexible production capacity to better serve our customers and return backlog to more normal levels as soon as possible. In addition, we are excited about our new strategic partnership with Lowe’s, and this shared opportunity to leverage the Toro brand and further serve our customer base. Lowe’s leadership position in the zero-turn mower category and strong footprint in key customer markets complements our existing channel strategy and is expected to bolster market presence of our powerful 60V battery portfolio. Our full line-up of Toro-branded all-season outdoor power equipment will be available at Lowe’s nationwide for the spring 2024 selling season. We believe our market leadership and business fundamentals remain strong. We have a proven ability to manage through economic cycles and seasonal variations, as evidenced by our long history of delivering positive results. We continue to prioritize investments that we expect will drive long-term profitable growth, supported by our empowered and resilient team of employees and channel partners. We believe we remain well-positioned to grow share and profitability in each of our attractive end markets with our strong brands, innovative new product pipeline and extensive distribution networks,” concluded Olson.