The Toro Company (NYSE:TTC) is a prominent player in the Zacks Tools - Handheld industry, known for its innovative solutions in outdoor environments. On September 4, 2025, TTC reported its Q3 earnings, showcasing a strong performance with earnings per share (EPS) of $1.24, surpassing the estimated $1.22. This marks a notable improvement from the $1.18 EPS reported in the same quarter last year.
Despite the positive EPS results, Toro's revenue for the quarter was $1.13 billion, which exceeded the estimated $1.05 billion but fell short of the Zacks Consensus Estimate by 2.02%. This revenue figure was also lower than the $1.16 billion reported in the same period last year. Over the past four quarters, Toro has consistently exceeded consensus EPS estimates three times, highlighting its ability to deliver strong earnings performance.
Toro's financial metrics provide further insights into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 20.17, indicating how the market values its earnings. The price-to-sales ratio stands at about 1.75, reflecting investor willingness to pay per dollar of sales. Additionally, the enterprise value to sales ratio is around 1.98, showing the company's total valuation relative to its sales.
The company's financial health is further supported by its debt-to-equity ratio of approximately 0.82, indicating a moderate level of debt compared to equity. The current ratio of about 1.81 suggests Toro's ability to cover its short-term liabilities with its short-term assets. These metrics, combined with an earnings yield of about 4.96%, provide a comprehensive view of Toro's financial standing and investment potential.
