On January 9, Zacks Equity Research upgraded Lindsay
Corporation ( LNN ) to a Zacks Rank
#1 (Strong Buy).
Why the Upgrade?
On Jan 8, Lindsay Corporation reported impressive first-quarter
fiscal 2013 results with a 53.33% earnings surprise and strong
outlook for the quarter as well as the year ahead. This helped this
manufacturer of irrigation equipment attain its 52-week high on Jan
9. The long-term expected earnings growth rate for this stock is
Lindsay reported first-quarter 2013 (ended Nov 30) earnings per
share of $1.15, beating the Zacks Consensus Estimate of 75 cents
and up 92% from the year-ago quarter. Higher demand for domestic
irrigation systems, expansion in irrigation margins helped by lower
input costs, strong pricing environment and fixed cost leverage on
higher sales led to the increase in earnings.
Lindsay expects positive farmer sentiment, increased farm
incomes and commodity prices affected by dry weather prevailing in
the U.S. to have a positive impact in fiscal 2013. Lindsay also
expects long-term demand to remain high, driven by increased food
production and efficient water use. Even though infrastructure
sales declined during the quarter, it is expected to pick up
through the remainder of the year.
For fiscal 2014, 1 of the 5 estimates was revised higher during
last 7 days, lifting the Zacks Consensus Estimate by 1% to $4.44
per share. The Zacks Consensus Estimates for 2013 and 2014 suggests
a year-over-year climb of 21.9% and 7.8%, respectively.
Other Stocks to Consider
Another stock in same industry that is worth considering is
Briggs & Stratton Corporation ( BGG ), which carries a
Zacks #2 Rank (Buy).BRIGGS & STRATT (BGG): Free Stock Analysis
ReportLINDSAY CORP (LNN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment