Why Toro Shares Are Sliding Today?
Portfolio Pulse from Lekha Gupta
Toro Co's shares fell by 13% after reporting worse-than-expected Q3 results and cutting its FY23 guidance. The company reported a 7% Y/Y sales decline to $1.08 billion, missing the consensus of $1.22 billion. Adjusted EPS of $0.95 also missed the consensus of $1.24. The company cited macro factors and unfavorable weather patterns as reasons for the decline. Toro also announced a strategic deal with Lowe's Companies Inc, making Toro's products available at all Lowe's stores for the Spring 2024 season.
September 07, 2023 | 4:37 pm
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NEUTRAL IMPACT
Toro Co announced a strategic deal with Lowe's Companies Inc, making Toro's products available at all Lowe's stores for the Spring 2024 season.
The strategic deal between Toro and Lowe's could potentially increase Lowe's sales in the future. However, as the deal's effects will not be seen until the Spring 2024 season, the short-term impact on Lowe's stock price is likely to be neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Toro Co's shares fell due to worse-than-expected Q3 results and a cut in FY23 guidance. The company's sales and EPS both missed consensus estimates.
Toro's worse-than-expected Q3 results and reduced FY23 guidance are likely to negatively impact investor sentiment, leading to a decrease in the company's stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100