Toro Co. reported a 69% rise in fiscal third-quarter profit as demand for its landscaping and irrigation equipment continued to rebound.
Chairman and Chief Executive Michael J. Hoffman said the Bloomington, Minn., company is "encouraged" by the recovery in its markets, as well as traction gained by new products, particularly in its professional segment.
The maker of lawnmowers, snowblowers and irrigation systems has seen demand improve from weak levels during the recession. Strong performance at its residential business in recent quarter led it to boost its full-year guidance in May.
For the quarter ended July 30, Toro reported a profit of $33.4 million, or $1.01 a share, up from $19.8 million, or 54 cents a share, a year earlier. Revenue jumped 16% to $458.9 million, following a prior-year drop of 20%.
Analysts polled by Thomson Reuters most recently forecast earnings of 78 cents a share on revenue of $430 million.
Gross margin rose to 35.2% from 33.9%, in part on its product mix.
Toro's professional segment, its largest by revenue, reported 22% sales growth on strong golf equipment and irrigation-system orders, while new products helped boost landscape maintenance-equipment and other irrigation-products sales. Residential sales improved 7.6%.
Toro boosted its earnings guidance for the year by 30 cents to $2.70 a share and boosted its revenue-growth view to 10% to 11% from 7%.