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Lindsay (LNN) Q2 Earnings & Revenues Beat Estimates, Up Y/Y
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Lindsay Corporation (LNN - Free Report) delivered earnings per share of $1.08 in second-quarter fiscal 2021 (ended as of Feb 28, 2021), beating the Zacks Consensus Estimate of 88 cents. The bottom-line figure surged 111.7% year over year. Improved agricultural market conditions driven by higher commodity prices contributed to the quarterly results.
Lindsay generated revenues of $144 million compared with the $114 million reported in the year-ago quarter. The top-line figure also surpassed the Zacks Consensus Estimate of $129 million.
The company’s backlog at the end of the reported quarter was $101.4 million compared with the $104.4 million witnessed at the end of the year-earlier quarter.
Operational Update
Cost of operating revenues went up 28% year on year to $102 million. Gross profit climbed 24.2% to $41 million from the year-earlier quarter. Gross margin came in at 28.4% compared with the year-ago quarter’s 29%.
Operating expenses flared up 2.4% year over year to $25.3 million during the fiscal second quarter. The company recorded an operating income of $16 million, suggesting year-over-year growth of 83.7%. Operating margin came in at 10.4% in the reported quarter compared with the 7.5% recorded in the prior-year period.
Lindsay Corporation Price, Consensus and EPS Surprise
The Irrigation segment revenues increased 28% year over year to $119 million during the fiscal second quarter. North America irrigation revenues jumped 19.4% from the year-ago quarter to $80 million, primarily on greater irrigation equipment unit sales volume and higher average selling prices. International irrigation revenues climbed 46.1% year on year to $38.4 million on higher unit sales volumes in in several international markets. The segment’s operating income soared 80% year on year to $18 million.
The Infrastructure segment revenues climbed 25% year over year to $25 million on higher Road Zipper System sales and lease revenues. The segment reported an operating income of $6.3 million compared with the prior-year quarter’s $5.8 million.
Financial Position
Lindsay had cash and cash equivalents of $111 million at the end of the fiscal second quarter compared with the $101 million at the end of the prior-year quarter. The company’s long-term debt stood at $116 million at the end of the fiscal second quarter, flat year on year.
Outlook
The company anticipates improved irrigation equipment demand for fiscal 2021 driven by solid farm prospects. Sales pipeline in Lindsay’s infrastructure business is robust. However, the company expects pandemic-induced delays in road construction activity and projects. Significant rise in raw material and freight costs as well as supply-chain constraints continue to dent margins.
Price Performance
Lindsay’s shares have appreciated 77.2% over the past year compared with the industry’s rally of 148.9%.
Deere has a projected earnings growth rate of 82.5% for fiscal 2021. Over the past year, the company’s shares have soared 133.2%.
AGCO has an estimated earnings growth rate of 29.9% for the ongoing year. The company’s shares have surged 134.1% in the past year.
Crown Holdings has an expected earnings growth rate of 16.2% for 2021. The stock has appreciated 80.1% in a year’s time.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Lindsay (LNN) Q2 Earnings & Revenues Beat Estimates, Up Y/Y
Lindsay Corporation (LNN - Free Report) delivered earnings per share of $1.08 in second-quarter fiscal 2021 (ended as of Feb 28, 2021), beating the Zacks Consensus Estimate of 88 cents. The bottom-line figure surged 111.7% year over year. Improved agricultural market conditions driven by higher commodity prices contributed to the quarterly results.
Lindsay generated revenues of $144 million compared with the $114 million reported in the year-ago quarter. The top-line figure also surpassed the Zacks Consensus Estimate of $129 million.
The company’s backlog at the end of the reported quarter was $101.4 million compared with the $104.4 million witnessed at the end of the year-earlier quarter.
Operational Update
Cost of operating revenues went up 28% year on year to $102 million. Gross profit climbed 24.2% to $41 million from the year-earlier quarter. Gross margin came in at 28.4% compared with the year-ago quarter’s 29%.
Operating expenses flared up 2.4% year over year to $25.3 million during the fiscal second quarter. The company recorded an operating income of $16 million, suggesting year-over-year growth of 83.7%. Operating margin came in at 10.4% in the reported quarter compared with the 7.5% recorded in the prior-year period.
Lindsay Corporation Price, Consensus and EPS Surprise
Lindsay Corporation price-consensus-eps-surprise-chart | Lindsay Corporation Quote
Segment Results
The Irrigation segment revenues increased 28% year over year to $119 million during the fiscal second quarter. North America irrigation revenues jumped 19.4% from the year-ago quarter to $80 million, primarily on greater irrigation equipment unit sales volume and higher average selling prices. International irrigation revenues climbed 46.1% year on year to $38.4 million on higher unit sales volumes in in several international markets. The segment’s operating income soared 80% year on year to $18 million.
The Infrastructure segment revenues climbed 25% year over year to $25 million on higher Road Zipper System sales and lease revenues. The segment reported an operating income of $6.3 million compared with the prior-year quarter’s $5.8 million.
Financial Position
Lindsay had cash and cash equivalents of $111 million at the end of the fiscal second quarter compared with the $101 million at the end of the prior-year quarter. The company’s long-term debt stood at $116 million at the end of the fiscal second quarter, flat year on year.
Outlook
The company anticipates improved irrigation equipment demand for fiscal 2021 driven by solid farm prospects. Sales pipeline in Lindsay’s infrastructure business is robust. However, the company expects pandemic-induced delays in road construction activity and projects. Significant rise in raw material and freight costs as well as supply-chain constraints continue to dent margins.
Price Performance
Lindsay’s shares have appreciated 77.2% over the past year compared with the industry’s rally of 148.9%.
Zacks Rank & Stocks to Consider
Lindsay currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Industrial Products sector are Deere & Co. (DE - Free Report) , AGCO Corporation (AGCO - Free Report) and Crown Holdings, Inc. (CCK - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Deere has a projected earnings growth rate of 82.5% for fiscal 2021. Over the past year, the company’s shares have soared 133.2%.
AGCO has an estimated earnings growth rate of 29.9% for the ongoing year. The company’s shares have surged 134.1% in the past year.
Crown Holdings has an expected earnings growth rate of 16.2% for 2021. The stock has appreciated 80.1% in a year’s time.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>