), after beating the Zacks Consensus in four of the last five
quarters, obtains the Zacks #1 Rank (Strong Buy). Higher estimates
and a good looking chart also make the stock just what aggressive
growth investors are looking for.
Lindsay Corporation designs, manufactures, and sells irrigation
systems that are primarily used in the agricultural industry to
increase or stabilize crop production while conserving water,
energy, and labor in the United States and internationally. Lindsay
Corporation was founded in 1954 and is based in Omaha, Nebraska.
LNN Tops Expectations in Four of Last Five
LNN has beaten the Zacks Consensus Estimate in four of the last
five quarters. Over the course of the last four reports, LNN has
surprised Wall Street with a average surprise of $0.09 and has
resulted in an average stock price increase of nearly 12%.
Along with beats of 27%, 25% and 30% the company has had one miss.
The August 2011 quarter saw earnings come in $0.18 below the Zacks
Consensus Estimate for a 28% miss. The stock moved lower by nearly
3% as a result.
LNN Recently Reported Earnings
On March 28, 2012 the company reported revenue of $132 million
roughly $3 million more than the Zacks Consensus Estimate and
higher than the $120 million reported in the year ago period. EPS
of $1.00 was $0.17 ahead of the estimate or a 20% beat.
Earnings Estimates Bumped Up
Following the most recent earnings report, analysts bumped up their
earnings estimates for 2012. The Zacks Consensus Estimate for 2012
EPS moved from $3.23 in February 2012 to the current level of
The valuation for LNN is not watered down. At 20x trailing PE, the
company trades well above the 12x industry average. Forward PE of
18.7x is also well above the industry average for 10x. Price to
book and price to sales also carry a premium to the industry
When we look at the price and consensus chart, we see how the stock
closely followed the Zacks Consensus Estimate for 2011 earnings
throughout most of 2010 and the first half of 2011. Then the chart
breaks apart, as earnings estimates continue to increase and the
stock lags behind. This is an indication of a stock that is
undervalued and prime for a breakout. LNN is a Zacks #1 Rank
Brian Bolan is the Aggressive Growth Stock Strategist for
Zacks.com. He is also the Editor in charge of the
Run Investor service
LINDSAY CORP (
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