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Lindsay (LNN) Moves 4.1% Higher: Will This Strength Last?

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Lindsay (LNN - Free Report) shares ended the last trading session 4.1% higher at $172.01. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.3% loss over the past four weeks.

The company's upbeat share performance can be attributed to forecast-topping third-quarter fiscal 2021 results. Lindsay reported earnings per share of $1.61, which beat the Zacks Consensus Estimate of $1.22. Revenues of $162 million also surpassed the Zacks Consensus Estimate of $147 million. Both earnings and sales figure improved 73.1% and 31.7%, year over year, respectively.

The company continues to witness robust demand for irrigation equipment, driven by upbeat agricultural commodity prices and solid farm prospects. It expects infrastructure business to improve as coronavirus restrictions are lifted and road construction activity returns to normal levels.

This irrigation equipment maker is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of +31.2%. Revenues are expected to be $146.55 million, up 19% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Lindsay, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LNN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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