Investment Analyst Sees Growth for Toro

6/1/2014

BLOOMINGTON, Minn. - Backed by its strong product lineup and an aggressive promotional calendar, this worldwide provider of turf and landscape maintenance equipment as well as irrigation solutions is poised to deliver revenue growth in the remainder of 2014, says Chicago-based Zacks Investiment Research.

The analyst, in a recent blog, said that Toro's end markets remained strong. The company's landscape contractor business outlook remains bullish. With favorable weather expected ahead and given its best ever product lineup for both contractors and acreage customers, Toro will deliver strong revenues in fiscal 2014, the analyst predicted in the blog.

Toro is launching additional products that include extensions of its popular zero-turn line featuring rear discharge decks, direct collection systems and smart technologies and a brand new line of 21-inch heavy duty mowers with added durability and improved bagging performance.

These products are in sync with the company's practice of delivering superior value to its contractor customers, said the blog.

It added that Toro CEO Michael Hoffman, in a Toro May 22 conference call, stated that the professional grounds business should benefit from improved weather conditions that will boost sports activity and revenue for local sports associations. The launch of the new 100-inch deck option for Groundsmaster 360, will enhance its productivity, and thus enhance its appeal to local sports and municipal agencies.

The anaylst also pointed to upticks in the company's golf equipment business and irrigation sales, thanks to innovations like the INFINITY sprinkler system. Another product category that should see growth is landscape lighting, again due to a new line of professional grade aluminum alloy lighting products called Element.

The professional rental and construction business is also expected to deliver continued year over-year growth. New home construction estimates indicating a more gradual growth throughout 2014 may be offset by increasing commercial construction. Improved weather and positive commercial construction forecast bode well for both equipment rental and purchase prospects, said the analyst in the blog, which you can read here