NBSM Overview

• Sales Performance: The Toro Company reported a 2% decrease in second-quarter fiscal 2025 sales to $1.32 billion, missing expectations, with significant declines in the residential segment and adjusted EPS slightly beating consensus.

• FY25 Outlook: The company has lowered its FY25 adjusted EPS guidance and net sales growth outlook, while emphasizing strategic steps to navigate macroeconomic challenges, as reflected in a decline of TTC shares by 1.8%.

• Company Performance and Outlook: ITT Inc. shares fell premarket as the company reported preliminary first-quarter results, projecting $1.0 billion in orders and over $900 million in revenue, with adjusted EPS expected between $1.43 to $1.45. Revenue growth is anticipated from pumps aftermarket and connectors, despite weak aerospace demand.

• Share Repurchase and New Product Launch: ITT plans to repurchase up to an additional $500 million in shares under its existing buyback plan and recently launched VIDAR, a smart motor aimed at reducing energy use and CO2 emissions, marking its entry into the industrial motor market.

• Quarterly Performance: The Toro Company reported a 1% decrease in first-quarter fiscal 2025 sales to $995 million, missing expectations, with residential segment sales down 8% while professional segment sales increased by 1.6%. Adjusted EPS rose 2% year-over-year to $0.65, surpassing estimates.

• Future Outlook: Toro expects net sales growth of 0%-1% and adjusted EPS between $4.25 and $4.40 for FY25, amid uncertainties in the macro environment. The company has achieved $64 million in cost savings and aims for $100 million by fiscal 2027, planning to reinvest some savings for innovation and growth.

• Worst Performing ETFs: The Defiance Daily Target 2X Long MSTR ETF (MSTX) and YieldMax Short NVDA Option Income Strategy ETF (DIPS) have been identified as the worst performing leveraged ETFs of the year, with MSTX suffering from structural issues and DIPS facing high risks due to complex derivatives.

• Top Performing ETFs: In contrast, Jensen's Quality Growth ETF (JGRW) and Neuberger Berman's Small-Mid Cap ETF (NBSM) were praised for their effective strategies, showing positive year-to-date returns of 3.96% and 0.90%, respectively.

• Third-Quarter Performance: The Toro Company reported a 6.9% year-over-year sales increase to $1.156 billion, which fell short of expectations, with adjusted EPS of $1.18 also missing consensus estimates. The company noted increased caution among homeowners and dealers affecting shipments.

• FY24 Outlook and Future Initiatives: Toro revised its FY24 net sales growth expectation to about 1% and adjusted EPS forecast to $4.15 - $4.20. CEO Richard M. Olson expressed optimism for future growth driven by productivity initiatives and strong positioning in attractive markets.

Needham upgraded Haemonetics to Buy from Hold with a $112 price target, citing improved margin outlook.

Key factors for margin growth: reduced low-margin Plasma sales and expanded high-margin Interventional Technologies sales.