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On January 9, Zacks Equity Research upgraded Lindsay Corporation (LNN - Analyst Report) to a Zacks Rank #1 (Strong Buy).
 
Why the Upgrade? 
 
On Jan 8, Lindsay Corporation reported impressive first-quarter fiscal 2013 results with a 53.33% earnings surprise and strong outlook for the quarter as well as the year ahead. This helped this manufacturer of irrigation equipment attain its 52-week high on Jan 9. The long-term expected earnings growth rate for this stock is 13.5%    
 
Lindsay reported first-quarter 2013 (ended Nov 30) earnings per share of $1.15, beating the Zacks Consensus Estimate of 75 cents and up 92% from the year-ago quarter. Higher demand for domestic irrigation systems, expansion in irrigation margins helped by lower input costs, strong pricing environment and fixed cost leverage on higher sales led to the increase in earnings.
 
Lindsay expects positive farmer sentiment, increased farm incomes and commodity prices affected by dry weather prevailing in the U.S. to have a positive impact in fiscal 2013. Lindsay also expects long-term demand to remain high, driven by increased food production and efficient water use. Even though infrastructure sales declined during the quarter, it is expected to pick up through the remainder of the year.
 
For fiscal 2014, 1 of the 5 estimates was revised higher during last 7 days, lifting the Zacks Consensus Estimate by 1% to $4.44 per share. The Zacks Consensus Estimates for 2013 and 2014 suggests a year-over-year climb of 21.9% and 7.8%, respectively.
 
Other Stocks to Consider 
 
Another stock in same industry that is worth considering is Briggs & Stratton Corporation (BGG - Snapshot Report), which carries a Zacks #2 Rank (Buy).

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