Toro shares tumble 11% as Q3 results disappoint, guidance falls short of estimates

NEW YORK - The Toro Company (NYSE:TTC ) saw its shares plunge 11.5% on Thursday after the outdoor equipment manufacturer reported third quarter earnings that fell short of analyst estimates and lowered its full-year outlook.

Toro posted adjusted earnings per share of $1.18 for the quarter ended August 2, missing the consensus forecast of $1.23. Revenue came in at $1.16 billion, below expectations of $1.26 billion but up 6.9% YoY.

The company cited increased caution from homeowners and lawn care dealers as summer progressed due to macroeconomic factors, resulting in lower-than-expected shipments of residential and professional lawn care products to its dealer channel.

"Our team executed with discipline and delivered top- and bottom-line growth in a very dynamic environment," said Richard M. Olson, chairman and CEO. "We achieved substantial growth in our residential segment driven by our strong mass channel, as expected following aggressive destocking last year, and the strategic addition of Lowe's (NYSE:LOW ) this year."

Toro revised its full-year adjusted EPS guidance to a range of $4.15 to $4.20, below the previous analyst consensus of $4.31. The company now expects total net sales growth of about 1% for fiscal 2024.

Toro noted it made progress reducing dealer field inventories of lawn care products and expects to exit the fiscal year in a better inventory position than last year.

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Source: Investing.com