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Lindsay (LNN) Earnings Top Estimates in Q2, Revenues Dip Y/Y
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Lindsay Corporation (LNN - Free Report) delivered earnings per share of $1.64 in second-quarter fiscal 2024 (ended as of Feb 29, 2024), beating the Zacks Consensus Estimate of $1.52. The bottom line rose 1% year over year.
Lindsay generated revenues of $152 million, down 8.8% from the $166 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $171 million.
The company’s backlog as of Feb 29, 2024, was $94 million compared with $95 million as of Feb 28, 2023. Our model predicted the backlog to be $94 million for the quarter.
Operational Update
The cost of operating revenues fell 8.4% year over year to $103 million. The gross profit was down 9.8% to $49 million from the year-earlier quarter. The gross margin was 32.3% compared with the year-ago quarter’s 32.6%.
Lindsay Corporation Price, Consensus and EPS Surprise
Operating expenses were $27 million in the fiscal second quarter, down 0.5% year over year. Operating income was $22 million, down from the prior-year quarter’s $27 million.
Segmental Results
The Irrigation segment’s revenues decreased 10% year over year to $133 million in the fiscal second quarter. We projected revenues of $152 million for the quarter. North America irrigation revenues fell 8.3% from the year-ago quarter to $83 million, primarily on lower sales and average selling prices. International irrigation revenues declined 12.6% year over year to $50 million. The segment’s operating income decreased 21.8% year over year to $25.6 million. Our estimate for the segment’s operating income was $28.8 million.
The Infrastructure segment’s revenues improved 0.2% year over year to $18.5 million. Higher Road Zipper System lease revenues were offset by lower Road Zipper System project sales and lower sales of road safety products. Our model predicted the segment’s revenues to be $21 million in the quarter. The segment reported an operating income of $3.5 million compared with $2 million a year ago. The upside was caused by a more favorable margin mix of revenues with higher Road Zipper System lease revenues. We expected an operating income of $3.1 million.
Financial Position
Lindsay had cash and cash equivalents of nearly $133 million at the end of the fiscal second quarter compared with $161 million at the end of fiscal 2023. The company’s long-term debt stood at around $115 million at the end of the fiscal second quarter, flat year over year.
Outlook
The company is optimistic about the potential opportunities in South America end markets, particularly Brazil. But, it anticipates current market conditions to moderate demand for irrigation equipment.
LNN's infrastructure business is beginning to benefit from rising infrastructure spending in the United States, particularly in Road Zipper System leasing and sales of road safety equipment. It also continues to actively manage projects through the Road Zipper System project sales funnel. However, project implementation timing remains difficult to estimate.
Price Performance
Lindsay’s shares have declined 10.4% in the past year against the industry’s growth of 5.2%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Lindsay currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 15.7% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 43.3% in the past year.
The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.15 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 72% in the past year.
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Lindsay (LNN) Earnings Top Estimates in Q2, Revenues Dip Y/Y
Lindsay Corporation (LNN - Free Report) delivered earnings per share of $1.64 in second-quarter fiscal 2024 (ended as of Feb 29, 2024), beating the Zacks Consensus Estimate of $1.52. The bottom line rose 1% year over year.
Lindsay generated revenues of $152 million, down 8.8% from the $166 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $171 million.
The company’s backlog as of Feb 29, 2024, was $94 million compared with $95 million as of Feb 28, 2023. Our model predicted the backlog to be $94 million for the quarter.
Operational Update
The cost of operating revenues fell 8.4% year over year to $103 million. The gross profit was down 9.8% to $49 million from the year-earlier quarter. The gross margin was 32.3% compared with the year-ago quarter’s 32.6%.
Lindsay Corporation Price, Consensus and EPS Surprise
Lindsay Corporation price-consensus-eps-surprise-chart | Lindsay Corporation Quote
Operating expenses were $27 million in the fiscal second quarter, down 0.5% year over year. Operating income was $22 million, down from the prior-year quarter’s $27 million.
Segmental Results
The Irrigation segment’s revenues decreased 10% year over year to $133 million in the fiscal second quarter. We projected revenues of $152 million for the quarter. North America irrigation revenues fell 8.3% from the year-ago quarter to $83 million, primarily on lower sales and average selling prices. International irrigation revenues declined 12.6% year over year to $50 million. The segment’s operating income decreased 21.8% year over year to $25.6 million. Our estimate for the segment’s operating income was $28.8 million.
The Infrastructure segment’s revenues improved 0.2% year over year to $18.5 million. Higher Road Zipper System lease revenues were offset by lower Road Zipper System project sales and lower sales of road safety products. Our model predicted the segment’s revenues to be $21 million in the quarter. The segment reported an operating income of $3.5 million compared with $2 million a year ago. The upside was caused by a more favorable margin mix of revenues with higher Road Zipper System lease revenues. We expected an operating income of $3.1 million.
Financial Position
Lindsay had cash and cash equivalents of nearly $133 million at the end of the fiscal second quarter compared with $161 million at the end of fiscal 2023. The company’s long-term debt stood at around $115 million at the end of the fiscal second quarter, flat year over year.
Outlook
The company is optimistic about the potential opportunities in South America end markets, particularly Brazil. But, it anticipates current market conditions to moderate demand for irrigation equipment.
LNN's infrastructure business is beginning to benefit from rising infrastructure spending in the United States, particularly in Road Zipper System leasing and sales of road safety equipment. It also continues to actively manage projects through the Road Zipper System project sales funnel. However, project implementation timing remains difficult to estimate.
Price Performance
Lindsay’s shares have declined 10.4% in the past year against the industry’s growth of 5.2%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Lindsay currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the Industrial Products sector are Proto Labs, Inc. (PRLB - Free Report) , Applied Industrial Technologies (AIT - Free Report) and Cadre Holdings, Inc. (CDRE - Free Report) . PRLB currently sports a Zacks Rank #1 (Strong Buy), and AIT and CDRE carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 15.7% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 43.3% in the past year.
The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.15 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 72% in the past year.