Overview
Irrigation equipment maker's Q1 revenue fell 6%, missing analyst expectations
Net earnings for Q1 decreased 4% yr/yr
Company completed $30 mln share repurchases during the quarter
Outlook
Lindsay expects $70 mln revenue from MENA irrigation project this fiscal year
Company anticipates North America irrigation market conditions to remain soft
Lindsay foresees growth in Brazil despite credit constraints
Result Drivers
IRRIGATION MARGINS - Improved margins in irrigation segment due to price management and operational efficiencies despite lower revenues
INFRASTRUCTURE GROWTH - Infrastructure segment revenues increased 17% driven by higher sales of road safety products
MENA PROJECT - Secured $80 million irrigation and technology project in MENA region post-quarter, expected to support future revenues
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Miss | $155.80 mln | $166.81 mln (4 Analysts) |
Q1 EPS | $1.54 | ||
Q1 Net Income | $16.50 mln | ||
Q1 Operating Income | $19.60 mln | ||
Q1 Operating Margin | 12.60% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"
Wall Street's median 12-month price target for Lindsay Corp is $131.00, about 10.5% above its January 7 closing price of $118.54
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago
Press Release: ID:nBwV1gKha
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
