Can Toro (TTC) Spring A Surprise This Earnings Season?

The Toro Company (NYSE:TTC) is scheduled to report third-quarter fiscal 2017 results on Aug 24. In the previous quarter, the company had reported a year-over-year improvement in earnings and also beat the Zacks Consensus Estimate. Let's see how things are shaping up prior to this announcement.

What to Expect?

The question lingering in investors' minds now is whether Toro will be able to post positive earnings surprise in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is 57 cents, reflecting a 13.33% year-over-year growth. We note that the Zacks Consensus Estimate has been stable in the last 30 days. Analysts polled by Zacks expect revenues of $627.93 million, up 4.48% from the year-ago quarter.

The company has outpaced the Zacks Consensus Estimate in the trailing four quarters and delivered an average positive earnings surprise of 9.60%.



In the past one year, Toro outperformed the industry it belongs to. The company's shares gained around 41.3% compared with roughly 25.7% growth recorded by the industry.

Factors at Play

For third-quarter fiscal 2017, Toro anticipates net earnings to be about 56 cents per share.

Toro continues to deliver value-added innovations in the markets to capitalize on the demand. The golf equipment business continues to ride on high market interest for products like Reelmasters, Greensmasters and Workman GTX units launched by the company in 2016. Further, product launches this year which includes the GreensPro roller, a variety of accessories for the Workman GTX, a GeoLink system for the smaller sprayer have met with strong customer response. These trends are likely to generate higher sales for Toro's golf products. The company also continues to maintain operational flexibility and prudently manages expenses that are likely to result in improved earnings in the quarter to be reported.

What Does the Zacks Model Unveil?

Our proven model does not conclusively show that Toro is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Toro has an Earnings ESP of 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 57 cents.

Toro carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company's ESP of 0.00% makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Burlington Stores, Inc. (NYSE:BURL) has an Earnings ESP of +4.00% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Nordic American Tankers Limited (NYSE:NAT) has an Earnings ESP of +7.14% and a Zacks Rank #3.

DSW Inc. (NYSE:DSW) has an Earnings ESP of +3.45% and a Zacks Rank #3.

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