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Lindsay (LNN) to Report Q3 Results: What's in the Cards?

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Lindsay Corporation (LNN - Free Report) is scheduled to report third-quarter fiscal 2022 results on Jun 30, before the opening bell.

A Peek at Q2 Results

In the last reported quarter, Lindsay’s earnings and sales beat the respective Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter average earnings surprise of 22.3%, on average.

Which Way are the Estimates Trending?

The Zacks Consensus Estimate for Lindsay’s earnings per share (EPS) is pegged at $1.57 for the fiscal third quarter, suggesting a year-over-year decline of 2.5%. The Zacks Consensus Estimate for total revenues is pinned at $186 million for the quarter, indicating a year-over-year increase of 14.7%.

Let’s see how things have shaped up before this announcement.

Key Factors to Consider

Strong demand for irrigation equipment in North America, led by high agricultural commodity prices and farm income projections, will likely get reflected in Lindsay’s fiscal third-quarter revenues. Increased concerns around food security owing to the pandemic and the Russia-Ukraine conflict are driving growth in the company’s international irrigation markets.

Demand for Lindsay’s transportation safety products continues to gain traction on population growth, the need for improved road safety and government spending on road construction. The Infrastructure Investment and Jobs Act (IIJA) signed into law on Nov 15, 2021, will provide a positive tailwind for the infrastructure business. This legislation introduced $110 billion in incremental federal funding to repair roads and bridges and support other transformational projects, which is likely to have translated into higher demand for LNN’s transportation safety products.

Lindsay’s Infrastructure segment has been witnessing lower Road Zipper System sales owing to pandemic-induced delays in road construction activity and projects. The timing of Road Zipper sales projects can be difficult to predict, particularly in the current environment with coronavirus-related effects on road construction. These factors might have impacted the segment’s revenues in the fiscal third quarter.

Lindsay has been witnessing a rapid increase in input costs, particularly of steel and zinc used in the production of its products coupled with significant increases in operating costs, including fuel and fertilizer. Constraints on the availability of raw materials, labor and trucking resources have led to higher lead times for deliveries. Although the company continues to implement sales price adjustments to combat the cost inflation, these factors are likely to have eroded margins in the soon-to-be-reported quarter.

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for Lindsay this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Lindsay is -11.02%.

Zacks Rank: Lindsay currently carries a Zacks Rank of 3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

Lindsay’s shares have declined 22.7% in the past year compared with the industry’s fall of 12.2%.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks Worth a Look

Here are some stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

Silvergate Capital Corporation (SI - Free Report) currently has an Earnings ESP of +6.27% and a Zacks Rank of 1. The Zacks Consensus Estimate for second-quarter 2022 earnings has been stable in the past 60 days and is currently pegged at 81 cents per share. This suggests year-over-year growth of 1.3%.

The Zacks Consensus Estimate for quarterly revenues is pegged at $72.4 million, indicating a growth of 70.5% from the prior-year quarter’s levels. Silvergate has a trailing four-quarter earnings surprise of 44.9%, on average.

DNB Bank ASA (DNBBY - Free Report) currently has an Earnings ESP of +4.25% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings is currently pegged at 47 cents per share, suggesting a 9.3% growth from the year-ago quarter’s tally. The same has moved up in the past 60 days.

The Zacks Consensus Estimate for DNB Bank’s quarterly revenues is pinned at $1.51 billion, indicating a year-over-year decline of 3.4%. DNBBY has a trailing four-quarter earnings surprise of 8.2%, on average.

Dover Corporation (DOV - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter 2022 earnings have been stable in the past 60 days and is currently pegged at $2.10 per share. This suggests year-over-year growth of 1.9%.

The Zacks Consensus Estimate for Dover’s quarterly revenues is pegged at $2.19 billion, indicating year-over-year growth of 7.7%. DOV has a trailing four-quarter earnings surprise of 7.4%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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