Canada's Toromont Q4 revenue beats estimates

Overview

• Canada equipment dealer's Q4 revenue rose 9%, beating analyst expectations

• Net earnings for Q4 increased 1% yr/yr

Outlook

• Toromont increases quarterly dividend by 7.7% to 56 cents per share

• Company focuses on long-term performance amid macroeconomic and trade uncertainty

Result Drivers

• EQUIPMENT GROUP PERFORMANCE - Strong activity in rentals, product support, and new equipment deliveries in power systems, despite lower mining deliveries

• CIMCO GROWTH - Higher revenue and earnings driven by demand and execution in Canada and the US

• AVL ACQUISITION IMPACT - Acquisition contributed to revenue growth but also led to short-term non-cash costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Toromont Industries Ltd is C$180.00, about 1.8% below its February 10 closing price of C$183.25

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nCNWxQ7zka

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