TTC Overview

Tech Stock Selloff: Investors sold off tech and AI-linked stocks, leading to a significant decline in the Nasdaq 100 and semiconductor ETFs, with notable drops in companies like Nvidia and Oracle.

Sector Performance: The semiconductor sector experienced its worst stretch since April, with chipmakers falling 9% over four days, while energy stocks like the Energy Select Sector SPDR Fund showed some resilience.

Precious Metals Rally: Silver prices surged over 4%, reaching $66.50 an ounce, while gold also rose, inching closer to its October record high, indicating a shift in investor interest towards precious metals.

Market Indices Overview: Major US indices, including the Dow Jones and S&P 500, experienced slight declines, reflecting a fragile risk appetite in the market, with Bitcoin also down 1.2%.

Fourth-Quarter and Full-Year Results: The Toro Company reported fourth-quarter net sales of $1.07 billion and full-year net sales of $4.51 billion, with adjusted earnings per share exceeding analyst estimates at 91 cents for the quarter and $4.20 for the year.

Segment Performance: The Professional segment saw stable sales at $910 million for the fourth quarter and a 1.9% increase to $3.62 billion for the full year, while the Residential segment experienced a decline in sales by 5% and 14% respectively.

Financial Highlights: Toro generated record free cash flow of $578 million and reported net cash from operating activities of $662 million, maintaining a strong balance sheet with $341 million in cash and approximately $922 million in long-term debt.

Fiscal 2026 Outlook: For fiscal 2026, Toro anticipates adjusted EPS between $4.35 and $4.50 and sales ranging from $4.601 billion to $4.736 billion, with shares rising 7.06% to $77.78 following the earnings report.