On Mar 25, 2014, Zacks Investment Research downgraded
), a leading designer and manufacturer of self-propelled center
pivot and lateral move irrigation systems, to a Zacks Rank #4
Why the Downgrade?
Lindsay Corporation has been witnessing downward estimate
revisions after reporting a 31% year-over-year fall in its
earnings per share to 79 cents in the first quarter of fiscal
2014. The decline was due to significantly lower agricultural
commodity prices, which dragged domestic irrigation revenues.
Total revenue remained flat year over year at $147.7 million.
Sales for the remainder of the fiscal year remain uncertain due
to lack of visibility into the primary selling season for
In addition, domestic irrigation sales in 2014 are likely to be
affected by decline in crop prices and tough comparisons. Sales
were particularly strong in 2013 due to drought-like conditions
across the U.S. and Corn Belt, which led to a rise in crop
prices. Lower commodity prices are dampening farmer sentiment and
management noted that U.S. irrigation orders have further slowed
down from the drought-driven pace a year ago. Management
anticipates competitive pricing to continue in 2014 and thereby
weigh on gross margins.
Lindsay Corporation expects demand in the infrastructure segment
to remain limited due to controlled government infrastructure
spending and project delays. The company does not foresee a major
turnaround in government infrastructure spending in fiscal 2014.
Other Stocks to Consider
Some better-ranked machinery makers include
Alamo Group, Inc.
Altra Industrial Motion Corp.
). All these stocks have a Zacks Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
ALAMO GROUP INC (ALG): Free Stock Analysis
LINDSAY CORP (LNN): Free Stock Analysis
XYLEM INC (XYL): Free Stock Analysis Report
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