Earnings Review and Free Research Report: Lindsay’s Revenue Grew 7%; EPS Jumped 13%

LONDON, UK / ACCESSWIRE / July 12, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Lindsay Corp. (NYSE: LNN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=LNN, following the Company’s release of its financial results for the third quarter fiscal 2017 on June 29, 2017. The irrigation equipment maker reported better than expected revenue and earnings figures. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

For its third quarter ended May 31, 2017, Lindsay recorded revenues of $151.5 million compared to revenues of $141.3 million in Q3 FY16. The Company’s revenue numbers exceeded analysts’ consensus of $144.8 million.

Lindsay’s gross margin for Q3 FY17 was 30.3% of sales compared to 29.6% of sales in the prior year’s third quarter. The improved margin in the infrastructure segment was partially offset by a slightly lower gross margin in the irrigation segment. The Company’s operating expenses for the reported quarter were $28.5 million, an increase of $2.0 million compared to the prior year’s corresponding quarter. The increase resulted primarily from higher product development costs and professional fees. Lindsay’s operating expenses were 18.8% of sales in Q3 FY17 compared with 18.7% of sales in Q3 FY16. The Company’s operating margins were 11.5% in the reported quarter compared to 10.8% in the year-ago same period.

Lindsay’s net earnings for Q3 FY17 were $11.0 million, or $1.02 per diluted share, compared with net earnings of $9.6 million, or $0.90 per diluted share, in Q3 FY16. The Company’s earnings numbers exceeded Wall Street’s expectations of $0.92 per share.

Segment Results

During Q3 FY17, Lindsay’s Irrigation segment’s revenues were $120.0 million, up 2% compared to $117.3 million in Q3 FY16. Irrigation segment generated operating income of $16.5 million for the reported quarter with an operating margin of 13.8% of sales. The Company’s US irrigation revenues were $75.2 million, increasing 2% on a y-o-y basis, driven by higher average selling prices and improved irrigation equipment unit volume. Lindsay’s International irrigation revenues were $44.8 million for the reported quarter, an increase of 2% on a y-o-y basis, driven by the continuation of a notable recovery in Brazil, increased project activity in developing markets, and a slightly favorable currency translation impact.

For Q3 FY17, Lindsay’s Infrastructure segment’s revenues increased 31% to $31.5 million, driven by higher Road Zipper® system sales and lease revenue and increased sales of road safety products in international markets. The Infrastructure segment generated operating income of $8 million in the reported quarter and operating margin of 25.5% of sales compared to operating income of $4.7 million and operating margin of 19.4% in the prior year’s same quarter, driven by higher Road Zipper system sales and lease revenue and volume leverage from higher road safety product sales.

Cash Matters

At the end of Q3 FY17, Lindsay’s cash and cash equivalents were $113.2 million compared to $101.2 million at the end of FY16 and $91.5 million at the end of Q3 FY16. Cash generated from operations in the first 9 months of FY17 was $24.5 million compared to $20.3 million generated in the year-ago corresponding period. The Company did not repurchase any of its shares in the reported quarter. Lindsay had a total of $63.7 million remains available under the Company’s share repurchase program as of May 31, 2017.

Backlog

Lindsay’s backlog of unshipped orders at May 31, 2017, was $70.1 million compared with $61.2 million at May 31, 2016. Higher order backlog in the irrigation segment was partially offset by slightly lower order backlog in the infrastructure segment compared to the prior year.

Stock Performance

At the closing bell, on Tuesday, July 11, 2017, Lindsay’s stock marginally slipped 0.77%, ending the trading session at $90.26. A total volume of 94.72 thousand shares has exchanged hands, which was higher than the 3-month average volume of 70.91 thousand shares. The Company’s stock price soared 3.23% in the last three months, 21.45% in the past six months, and 30.93% in the previous twelve months. Moreover, the stock rallied 20.98% since the start of the year. The stock is trading at a PE ratio of 39.09 and has a dividend yield of 1.29%. The stock currently has a market cap of $959.46 million.

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