Lawn and turf care specialist Toro (NYSE:TTC) arguably could have picked a better time to focus on improving its cost structure and working capital requirements, as the turbulence in the housing market and overall economy had a big negative impact on equipment sales. Although the company still has low margins and a modest sales growth outlook, the company generates a fairly compelling stream of cash flow. Nevertheless, it does not leap out as a great buy candidate today.
A Good Quarter, but Does Anybody Care?
Toro delivered a solid quarter, at least in respect to expectations. Revenue rose 9%, as the larger professional segment (up less than 6%) was boosted by the nearly 13% growth of the residential business. Toro easily topped out above the high end of Wall Street expectations, but this is not an especially well-followed stock.
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