Toro Co (NYSE:TTC) stock fell 0.50% (As on December 21, 11:29:46 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. The company’s focus aligns with the recent launch of a transformational productivity initiative the company have named AMP, which stands for “Amplifying Maximum Productivity.” The company expects this multi-year initiative to result in annualized cost savings of more than $100 million by fiscal 2027, driven by sustainable supply-base, design-to-value, and route-to-market transformation. The company intends to reinvest a portion of the savings from this initiative, to drive further innovation and growth.

Moreover, Professional segment net sales for the fourth quarter were $828.9 million, down 12.3% from $944.7 million in the same period last year. The decrease was primarily driven by lower shipments of contractor-grade lawn care equipment and snow products, and increased floor planning costs, partially offset by higher shipments of underground and specialty construction products, and golf and grounds equipment. Residential segment net sales for the fourth quarter were $148.4 million, down 33.6% from $223.5 million in the same period last year. The decrease was primarily driven by lower shipments of products broadly across the segment, partially offset by net price realization.

TTC in the fourth quarter of FY 23 has reported the adjusted earnings per share of 71 cents, beating the analysts’ estimates for the adjusted earnings per share of 56 cents, according to Zacks Investment Research. The company had reported the adjusted revenue of $983.2 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $976.1 million. Adjusted gross margin for the fourth quarter was 33.6%, compared with 34.1% for the same prior-year period. The decreases in adjusted gross margin were primarily due to higher material costs and inventory reserves, partially offset by productivity improvements and favorable product mix. SG&A expense as a percentage of net sales for the fourth quarter was 23.9%, compared with 21.2% in the prior-year period. The increase was primarily driven by lower net sales, and increased investment in research and engineering, partially offset by lower warranty costs. Adjusted operating earnings as a percentage of net sales for the fourth quarter were 10.1%, compared with 12.9% in the same prior-year period.

Toro expects full-year earnings in the range of $4.25 to $4.35 per share. For fiscal 2024, management expects low-single-digit total company net sales growth.