Why Toro's Best-Ever Quarter Just Wasn't Enough
The Toro Company (NYSE: TTC) announced seemingly strong fiscal third-quarter 2017 results late last month, but shares of the outdoor equipment specialist plunged more than 8% in a single day in response.
More specifically, Toro's quarterly revenue climbed 4.5% year over year to $627.9 million, which translated to 22% growth in net earnings to $0.61 per share. Both figures marked new company records, with the latter well ahead of Toro's guidance for earnings of $0.56 per share. And analysts, on average, were looking for lower earnings of $0.57 per share on roughly the same revenue.
Let's take a closer look to determine whether the market's negative reaction was merited, and -- perhaps more important -- whether investors should be concerned.
Source: Fool.com
