Toro fiscal 2Q net income rises 14 percent

BLOOMINGTON, Minn. (AP) -- Toro Co. said Thursday its fiscal second-quarter net income rose 14 percent, helped by stronger demand for professional landscaping and construction equipment.

For the quarter ended May 3, Toro earned $78.4 million, or $1.32 per share, up from $68.8 million, or $1.13 per share, in the same quarter the year before.

Revenue rose 2 percent to $704.5 million from $691.5 million.

The results beat Wall Street predictions. Analysts, on average, expected a profit of $1.16 per share on $689.8 million in revenue, according to FactSet.

Toro said that colder-than-normal weather conditions early in the quarter delayed some sales, especially at its residential products division. But better market conditions for some of its professional customers, along with new products, boosted demand for professional products and offset the delay in residential shipments.

Sales at the company's professional division rose 9 percent to $496.4 million, while residential sales dropped 13 percent to $201.4 million.

Citing the lost sales stemming from the late start to spring, Toro said it now expects full-year sales growth of between 3 percent and 4 percent, down from its previous prediction of 4 percent to 5 percent growth.

Based on Toro's year-ago results, the new guidance implies 2013 revenue of $2.02 billion to $2.04 billion, while analysts expect $2.03 billion. The company backed its previous 2013 earnings prediction of $2.40 to $2.45 per share. Analysts expect $2.44 per share.

Shares of Bloomington, Minn.-based Toro rose $2.29, or 4.9 percent, to $48.74 in morning trading while the broader markets sold off.