The Toro Company (NYSE:TTC) shares fell after the company posted fiscal third-quarter net sales of $1.13 billion, a 2% decline from a year earlier and short of the $1.16 billion analyst estimate.
Net earnings fell to $53.5 million from $119.3 million, with diluted earnings per share of 54 cents, including a noncash impairment charge of 62 cents per share, or $81 million pretax.
Adjusted net earnings were $122.5 million compared with $123.7 million a year ago, while adjusted diluted earnings per share rose 5% to $1.24, beating the $1.22 estimate.
Professional segment sales increased 5.7% to $930.8 million, driven by higher shipments of underground construction and golf and grounds equipment, and net price realization. Segment earnings rose to $198.5 million from $165.7 million, with margin expanding to 21.3% from 18.8%.
Residential segment sales fell 27.9% to $192.8 million, reflecting lower homeowner demand. Earnings dropped to $3.7 million from $32.6 million, with margin declining to 1.9% from 12.2%.