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Lindsay (LNN - Free Report) delivered adjusted earnings per share of $1.65 in first-quarter fiscal 2023, beating the Zacks Consensus Estimate of $1.25. The bottom line surged 129% year over year, aided by solid demand, improved price realization and easing inflationary headwinds in the irrigation business. The infrastructure business benefitted from higher Road Zipper System sales.
Lindsay generated revenues of $176 million, up 6% from the $166 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $179 million.
The company’s backlog as of Nov 30, 2022, was around $130 million compared with $155 million as of Nov 30, 2021. Both irrigation and infrastructure backlog declined year over year.
Operational Update
The cost of operating revenues decreased 4.3% year over year to $123 million. Gross profit increased 41.6% to $53 million from the year-earlier quarter. The gross margin was 30.1% compared with the year-ago quarter’s 22.5%.
Operating expenses were $28 million in the fiscal first quarter, up 18% year over year. Operating income was $24.6 million, up from the prior-year quarter’s $13.4 million.
Lindsay Corporation Price, Consensus and EPS Surprise
The Irrigation segment revenues rose 4% year over year to around $152 million in the fiscal first quarter. North America irrigation revenues gained 6% from the year-ago quarter to around $84 million on higher average selling prices.
International irrigation revenues increased 2% year over year to roughly $68 million. Strong sales growth in Brazil and other markets helped offset the impacts of reduced sales in Ukraine and Russia, as well as a large Egypt project in the prior year that was not repeated this quarter. The irrigation segment’s operating income surged 66% year over year to $29 million, owing to improved price realization, a more favorable margin mix of international irrigation revenues, and a lower inflationary impact on input costs than the first quarter of fiscal 2022.
The Infrastructure segment revenues increased 19% year over year to $24 million on higher Road Zipper System project sales. However, this was partially offset by lower Road Zipper System lease revenues. Operating income was $3.4 million in the quarter under review compared with $2.8 million in the prior-year quarter.
Financial Position
Lindsay had cash and cash equivalents of roughly $99 million at the end of the first quarter of fiscal 2023 compared with $85 million at the end of the prior-year quarter. The company’s long-term debt stood at around $115 million at the end of Nov 30, 2022, flat with that reported on Nov 30, 2021.
Outlook
North America irrigation equipment demand is likely to remain positive, based on current commodity price levels and upbeat net farm income projections/expectations. The company anticipates demand in international markets to benefit from higher production, driven by favorable agricultural market fundamentals and ongoing concerns over food security and global grain supplies.
The infrastructure segment will likely gain from the ongoing management of the company’s project sales funnel and the expected increase in U.S. infrastructure spending.
Price Performance
Lindsay’s shares have gained 16.6% in the past year compared with the industry’s growth of 11.3%.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate has moved up 25% in the past 60 days. KNBE’s shares have gained 15.5% in a year.
The Zacks Consensus Estimate for Deere & Company’s 2023 earnings per share is pegged at $27.83, suggesting an increase of 19.5% from that reported in the last year. The consensus estimate moved 5.1% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 10.2% in the last year.
Belden has an average trailing four-quarter earnings surprise of 12%. The Zacks Consensus Estimate for BDC’s 2022 earnings is pegged at $6.33 per share. This indicates a 32.4% increase from the prior-year reported figure. The consensus estimate has been revised 2.1% north in the past 60 days. BDC’s shares gained 16.5% in the last year.
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Lindsay (LNN) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Lindsay (LNN - Free Report) delivered adjusted earnings per share of $1.65 in first-quarter fiscal 2023, beating the Zacks Consensus Estimate of $1.25. The bottom line surged 129% year over year, aided by solid demand, improved price realization and easing inflationary headwinds in the irrigation business. The infrastructure business benefitted from higher Road Zipper System sales.
Lindsay generated revenues of $176 million, up 6% from the $166 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $179 million.
The company’s backlog as of Nov 30, 2022, was around $130 million compared with $155 million as of Nov 30, 2021. Both irrigation and infrastructure backlog declined year over year.
Operational Update
The cost of operating revenues decreased 4.3% year over year to $123 million. Gross profit increased 41.6% to $53 million from the year-earlier quarter. The gross margin was 30.1% compared with the year-ago quarter’s 22.5%.
Operating expenses were $28 million in the fiscal first quarter, up 18% year over year. Operating income was $24.6 million, up from the prior-year quarter’s $13.4 million.
Lindsay Corporation Price, Consensus and EPS Surprise
Lindsay Corporation price-consensus-eps-surprise-chart | Lindsay Corporation Quote
Segment Results
The Irrigation segment revenues rose 4% year over year to around $152 million in the fiscal first quarter. North America irrigation revenues gained 6% from the year-ago quarter to around $84 million on higher average selling prices.
International irrigation revenues increased 2% year over year to roughly $68 million. Strong sales growth in Brazil and other markets helped offset the impacts of reduced sales in Ukraine and Russia, as well as a large Egypt project in the prior year that was not repeated this quarter. The irrigation segment’s operating income surged 66% year over year to $29 million, owing to improved price realization, a more favorable margin mix of international irrigation revenues, and a lower inflationary impact on input costs than the first quarter of fiscal 2022.
The Infrastructure segment revenues increased 19% year over year to $24 million on higher Road Zipper System project sales. However, this was partially offset by lower Road Zipper System lease revenues. Operating income was $3.4 million in the quarter under review compared with $2.8 million in the prior-year quarter.
Financial Position
Lindsay had cash and cash equivalents of roughly $99 million at the end of the first quarter of fiscal 2023 compared with $85 million at the end of the prior-year quarter. The company’s long-term debt stood at around $115 million at the end of Nov 30, 2022, flat with that reported on Nov 30, 2021.
Outlook
North America irrigation equipment demand is likely to remain positive, based on current commodity price levels and upbeat net farm income projections/expectations. The company anticipates demand in international markets to benefit from higher production, driven by favorable agricultural market fundamentals and ongoing concerns over food security and global grain supplies.
The infrastructure segment will likely gain from the ongoing management of the company’s project sales funnel and the expected increase in U.S. infrastructure spending.
Price Performance
Lindsay’s shares have gained 16.6% in the past year compared with the industry’s growth of 11.3%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
LNN currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are KnowBe4 , Deere & Company (DE - Free Report) , and Belden (BDC - Free Report) . KNBE flaunts a Zacks Rank #1 (Strong Buy) at present, and DE and BDC carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate has moved up 25% in the past 60 days. KNBE’s shares have gained 15.5% in a year.
The Zacks Consensus Estimate for Deere & Company’s 2023 earnings per share is pegged at $27.83, suggesting an increase of 19.5% from that reported in the last year. The consensus estimate moved 5.1% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 10.2% in the last year.
Belden has an average trailing four-quarter earnings surprise of 12%. The Zacks Consensus Estimate for BDC’s 2022 earnings is pegged at $6.33 per share. This indicates a 32.4% increase from the prior-year reported figure. The consensus estimate has been revised 2.1% north in the past 60 days. BDC’s shares gained 16.5% in the last year.