Shares of Ingersoll Rand Inc. (IR) tumbled 7.28% in after-hours trading on Thursday following the company's announcement of a reduced profit forecast for the year, despite reporting higher earnings and revenue for the third quarter.

The industrial machinery and equipment manufacturer lowered its full-year adjusted earnings per share guidance to a range of $3.25 to $3.31, down from its previous projection of $3.34 to $3.46. This downward revision appears to have spooked investors, leading to the sharp decline in stock price. The company, however, maintained its forecast for annual revenue growth of 4% to 6%.

For the third quarter, Ingersoll Rand reported a profit of $244.1 million, or $0.61 per share, up from $221.6 million, or $0.54 per share, in the same period last year. Adjusted earnings per share came in at $0.86, meeting analysts' expectations. Revenue rose 5% to $1.96 billion, slightly ahead of the $1.95 billion forecast by analysts. Despite these positive results, the lowered full-year outlook seems to have overshadowed the quarterly performance, resulting in the significant after-hours sell-off.