Toro Co (NYSE:TTC) stock rose 1.55% (As on September 2, 11:30:43 AM UTC-4, Source: Google Finance) after the company’s earnings totaled $125.15 million for the quarter compares with $96.32 million, in last year’s third quarter. The company’s revenue for the third quarter rose 18.4% to $1.16 billion from $0.98 billion last year. Professional segment net sales for the third quarter were $886.2 million, up 23.3% from $718.5 million in the same period last year. The increase was driven primarily by net price realization, higher shipments of zero-turn and stand-on mowers, and incremental revenue from the company’s fiscal 2022 Intimidator Group acquisition, partially offset by lower volume in certain key product categories due to product availability constraints. Residential segment net sales for the third quarter were $270.0 million, up 7.1% from $252.1 million in the same period last year. The increase was primarily driven by net price realization and higher shipments of zero-turn riding mowers and snow products, partially offset by lower sales of walk-power mowers and portable-power products. Orders in the professional segment remain strong, including exceptional momentum in underground construction and golf. For solutions geared to landscape contractors and residential customers, demand remains favorable and, as expected, retail patterns are beginning to normalize.

Moreover, the gross margin for the third quarter was 34.5%, compared with 33.9% for the same prior-year period. The increase in gross margin was primarily due to net price realization and productivity improvements, partially offset by higher material, freight and manufacturing costs, as well as the addition of the Intimidator Group at a lower initial gross margin than the company average. Operating earnings margin was 14.0% for the third quarter, compared with 12.5% in the same prior-year period. Adjusted operating earnings margin for the third quarter was 14.1%, compared with 13.1% in the same prior-year period. Professional segment earnings for the third quarter were $166.2 million, up 35.9% from $122.3 million in the same period last year, and when expressed as a percentage of net sales, 18.8%, up from 17.0% in the prior-year period.

Looking ahead to the full year, the company raised adjusted earnings guidance and now expects adjusted earnings per share in a range of $4.07-$4.17. The earlier outlook was in the range of $3.90 to $4.10 per share. Net sales growth for the period is now expected to increase by 14 percent, while the earlier projection was in the range of 12 to 14 percent.