11:13 AM EDT, 09/05/2024 (MT Newswires) -- Toro (TTC) shares tumbled intraday Thursday after the landscaping equipment maker reported weaker-than-expected fiscal third-quarter results and cut its earnings outlook for the year, pointing to a heightened level of macro uncertainty.

Revenue rose to $1.16 billion for the three months ended Aug. 2 from $1.08 billion a year ago but was short of the $1.26 billion average estimate among six analysts surveyed by Capital IQ. Adjusted earnings climbed to $1.18 from $0.95 last year, missing seven analysts' $1.23 view. Shares of Toro slid nearly 10% in Thursday trading.

Professional segment sales were down 1.7% year over year to $880.9 million mainly due to lower shipments of snow and ice management products, lawn care equipment and compact utility loaders. The results were partially offset by increased shipments of golf and grounds products and underground construction equipment as well as net price realization.

Sales in Toro's smaller residential segment advanced nearly 53% to $267.5 million due to higher shipments in the company's mass channel, which was expected following "aggressive destocking last year, and the strategic addition of Lowe's (L) this year," Chief Executive Richard Olson said in a statement.

For fiscal 2024, Toro narrowed its sales growth guidance to about 1% from a previous expectation that the top line would advance in the low single-digit range. It now sees adjusted EPS between $4.15 and $4.20, reduced from its prior $4.25 to $4.35 range.

Analysts in a Capital IQ survey are expecting revenue of $4.72 billion and normalized EPS of $4.31 for the ongoing year.

"The projected strength in infrastructure spending for the foreseeable future is a positive outlier in the construction industry, and golf rounds played show no signs of slowing down," Olson said.

However, a "heightened level of macro uncertainty will continue to drive near-term caution" for lawn care products, he said.

Price: 81.95, Change: -9.05, Percent Change: -9.95