) is slated to report its second-quarter 2012 results before the
market opens on March 28. The Zacks Consensus Estimate for the
quarter is 83 cents per share, representing an estimated
year-over-year decrease of 6.37%. Revenues, as per the Zacks
Consensus Estimate, is $129 million.
First Quarter Synopsis
The company, in the first quarter (ended November 30, 2011),
reported adjusted earnings of 60 cents per share, beating the Zacks
Consensus Estimate of 46 cents and exceeding the year-ago earnings
of 38 cents.
Revenues in the reported quarter increased 34% year over year to
$119 million, comfortably surpassing the Zacks Consensus Estimate
of $102 million.
Lindsay, which competes with
Valmont Industries Inc.
), experienced growth in its top-line due to an increase in total
irrigation equipment revenues that registered $100.8 million, up
68% year over year. This was attributable to a rise in domestic as
well as international irrigation revenues.
Estimate Revision Trend
Out of the 9 analysts covering the stock, none have revised
their estimates for the second quarter in either direction over the
last 7 and 30 days. A similar trend applies for fiscal
The Zacks Consensus Estimates remained the same for both the
second quarter and fiscal 2012 over the last 7 and 30 days.
Earnings Surprise History
With respect to earnings surprise, Lindsay has topped the Zacks
Consensus Estimate in three of the last four quarters while it
missed the estimate on one occasion. The company has delivered an
average positive earnings surprise of 13.61% over the preceding
four quarters, implying that it has beaten the Zacks Consensus
Estimate by that measure.
The United Sates Department of Agriculture predicts that the net
farm income will remain high at $91.7 billion in 2012, down 6.5%
from 2011 forecast. It also predicted that the sales of corn, other
food grins and peanuts will offset the declines in sales of wheat,
hay, vegetables/melons, and fruits/tree nuts. Lindsay's irrigation
segment will thus benefit from rising farm income. Lindsay expects
to benefit in the long term from the demand for increased food
production, driven by worldwide population growth, efficient water
use, mounting need for biofuel and improving transportation
Lindsay's Infrastructure revenues depend on government funding
of transportation projects. The segment has been experiencing
pressure from budget cutbacks. Moreover, the latest extension of
the government's authority to spend money from the trust fund that
pays for transportation program will be expiring on March 31, 2012.
Thus, the infrastructure segment's outlook remains unclear due to
government budget constraints and a delay in the congressional
passage of a new federal highway bill.
Our long-term recommendation on Lindsay remains Neutral.
Currently, the stock retains a Zacks #3 Rank, implying a short-term
LINDSAY CORP (
): Free Stock Analysis Report
VALMONT INDS (
): Free Stock Analysis Report
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