The Toro Company (TTC) shares fell Wednesday as the maker of lawnmowers, snowblowers, and other outdoor equipment missed sales estimates and gave weak guidance as it faced a tough economic climate.

Toro reported fourth-quarter revenue increased 9% to $1.08 billion, while analysts surveyed by Visible Alpha were looking for $1.09 billion. Adjusted earnings per share (EPS) of $0.95 aligned with estimates but net income of $89.9 million was below forecasts. 

Professional segment sales were up 10% to $913.9 million, primarily because of higher shipments of golf and grounds products and underground construction equipment, along with higher prices. Sales at its Residential division rose 4.5% to $155.1 million on demand for lawn care products through its mass channel.

Chief Executive Officer (CEO) Richard Olsen explained that the company faced "an extremely dynamic environment" during the year. Olsen added that in the fourth quarter Toro "enhanced productivity and carefully controlled expenses," which helped offset a higher-than-anticipated proportion of lower-margin products in net sales.

Toro Sees Fiscal 2025 Adjusted EPS, Revenue Below Analysts' Expectations

For fiscal 2025, the company sees adjusted EPS from $4.25 to $4.40, with revenue flat to up 1.0%. Analysts expected adjusted EPS of $4.59 and revenue higher by 4.1%.    

Toro shares recently slipped 2% and are down about 13% year-to-date.