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Lindsay (LNN) Secures Alex Fraser Bridge Contract Worth $14M

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Lindsay Corporation (LNN - Free Report) has secured a contract from the Province of British Columbia’s Ministry of Transportation and Infrastructure, worth around $14 million. Per the contract, Lindsay will install its Road Zipper System on the Alex Fraser Bridge.

Located in Vancouver, British Columbia, the Alex Fraser Bridge is a cable-stayed bridge which connects Richmond and New Westminster with North Delta. It is one of the most congested bridges in Vancouver as more than 119,000 vehicles use it daily on an average.

The bridge is also very prone to accidents and a number of collisions have occurred in recent times. On Dec 17, a massive mishap occurred when five cars crashed on this bridge. Thus, the Government of British Columbia has decided to introduce a seventh lane to the bridge, in addition to a moveable barrier system.

Notably, the deployment of Lindsay’s Road Zipper System on the Alex Fraser Bridge will improve capacity and help reduce traffic congestion during peak periods. Its moveable barrier technology will replace an existing static concrete barrier, creating four lanes northbound and three lanes southbound during the morning rush hour. At all other times, there will be four lanes southbound and three lanes northbound.

Work under the contract is expected to begin in third-quarter fiscal 2018 and likely to close in first-quarter fiscal 2019. The contract will help drive growth in Lindsay’s Infrastructure segment.

This irrigation equipment maker recorded order backlog of $80.3 million at the end of first-quarter fiscal 2018, up around 44% year over year, indicating an increase in backlog in both the Irrigation and Infrastructure segments. The company expects its backlog to grow, backed by the latest order for the Alex Fraser Bridge project.

However, Lindsay’s shares have underperformed the industry in a year’s time. The stock has gained around 17.5%, while the industry has recorded growth of 47.4% during the same time frame.



Zacks Rank & Stocks to Consider

Lindsay currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same industry are Deere & Company (DE - Free Report) , Caterpillar Inc. (CAT - Free Report) and Kubota Corporation (KUBTY - Free Report) . While Deere sports a Zacks Rank #1 (Strong Buy), Caterpillar and Kubota carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Deere has a long-term earnings growth rate of 8.2%. Its shares have rallied 53%, year to date.

Caterpillar has a long-term earnings growth rate of 10.3%. So far this year, shares of the company have gained 70.8%.

Kubota has a long-term earnings growth rate of 10.7%. The company’s shares are up 37.3% year to date.

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