) is slated to report its third-quarter 2012 results before the
market opens on June 27. The Zacks Consensus Estimate for the
quarter is $1.37 per share, representing an estimated
year-over-year increase of 13.89%. Revenues, as per the Zacks
Consensus Estimate, are $166 million.
Second Quarter Synopsis
The company, in the second quarter (ended February 29, 2012),
reported earnings of $1.00 per share, beating both the Zacks
Consensus Estimate of 83 cents and year-ago earnings of 89 cents.
Revenues in the reported quarter increased 10% year over year to
$132.1 million, comfortably surpassing the Zacks Consensus Estimate
of $129 million.
Lindsay experienced growth in its top line, driven by an increase
in total irrigation equipment revenues by 28% to $117 million 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 third quarter in either direction over the last 7
and 30 days. A similar trend applies for fiscal 2012.
The Zacks Consensus Estimates remained the same for both the third
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 consensus estimate on one occasion. The company has
delivered an average positive earnings surprise of 11.95% over the
preceding four quarters, implying that it has beaten the Zacks
Consensus Estimate by that measure.
Lindsay is experiencing positive demand for irrigation equipment
due to increased food production and efficient water use. High
commodity prices and farm income are driving positive farmer
sentiments, benefiting Lindsay's irrigation segment. We expect
increased demand for food production, driven by worldwide
population growth and efficient water use will benefit Lindsay in
the long term.
The infrastructure segment, however, may face challenges due to
uncertainty regarding the new highway bill. The bill has just been
extended for the ninth time instead of formulating a new one. In
addition, tight credit conditions and soft consumer confidence
remain headwinds for the segment.
LINDSAY CORP (LNN): Free Stock Analysis Report
VALMONT INDS (VMI): Free Stock Analysis Report
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Lindsay retains a short-term Zacks #3 Rank (Hold). We have a
long-term Neutral recommendation on the stock.
Lindsay is a leading designer and manufacturer of self-propelled
center pivot and lateral move irrigation systems, which are used
principally for agriculture to increase or stabilize crop
production while conserving water, energy and labor. Lindsay
maintains its corporate offices in Omaha, Nebraska. The company
Valmont Industries Inc.