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Earnings Review and Free Research Report: Lindsay Reported Lower than Expected Quarterly Results
ACCESS Newswire
Research Desk Line-up: Art's-Way Manufacturing Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 17, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Lindsay Corp. (NYSE: LNN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=LNN, following the Company's disclosure of its fourth quarter and fiscal 2017 operating results on October 12, 2017. The irrigation equipment maker's quarterly revenue and earnings declined on a y-o-y basis; however, its FY17 revenue and earnings grew compared to the year-ago same period. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Farm & Construction Machinery industry. Pro-TD has currently selected Art's-Way Manufacturing Co., Inc. (NASDAQ: ARTW) for due-diligence and potential coverage as the Company announced on October 04, 2017, its financial results for Q3 2017 and YTD FY17. Register for a free membership today, and be among the early birds that get access to our report on Art's-Way Manufacturing when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on LNN; also brushing on ARTW. With the links below you can directly download the report of your stock of interest free of charge at:
For its fourth quarter ended August 31, 2017, Lindsay's revenues were $131.9 million compared to revenues of $132.9 million in Q4 FY17. The Company's revenue number fell short of analysts' estimates of $134.8 million.
For FY17, Lindsay reported revenues of $518.0 million, reflecting a slight increase compared to $516.4 million in FY16.
During Q4 FY17, Lindsay's gross margin was 28.6% of sales compared to 30.1% of sales in Q4 FY16. The Company's operating expenses for the reported quarter were $26.3 million, representing a drop of $1.7 million in operating expenses on a y-o-y basis. The decrease was attributed to lower selling and administrative expenses while engineering and development costs remained stable. Lindsay's operating expenses represented 19.9%% of sales in the reported quarter compared to 21.0% in the year-earlier same quarter.
Lindsay's operating income for Q4 FY17 totaled $11.5 million, down 4% compared to $12.0 million in Q4 FY16. The Company's operating margin came at 8.7% for the reported quarter compared to 9.0% in the prior year's same quarter.
For Q4 FY17, Lindsay posted net earnings of $6.3 million, or $0.59 per diluted share, compared to net earnings of $7.8 million, or $0.73 per diluted share, in Q4 FY16. The Company stated that a higher effective income tax rate for the reported quarter decreased net earnings by $1.1 million, or $0.10 per diluted share. Lindsay's earnings fell short of Wall Street's estimates of $0.65 per share.
For FY17, Lindsay's net earnings were $23.2 million, or $2.17 per diluted share, compared to $20.3 million, or $1.85 per diluted share, in FY16. The Company noted that higher effective income tax rate in FY17 decreased net earnings by $1.5 million, or $0.14 per diluted share, compared to FY16.
Lindsay's Segment Results
During Q4 FY17, the Irrigation segment's revenues were $101.9 million, reflecting an increase of 2% compared to revenues of $99.9 million in Q4 FY16. The Company's US irrigation's revenues were $55.6 million, down 3% on a y-o-y basis, primarily driven by lower filtration and pump system revenues. The International irrigation revenues jumped 9% to $46.3 million on a y-o-y basis, driven by the continued market recovery in Brazil, increased project activity in developing markets, and a slightly favorable currency translation impact.
For Q4 FY17, the Infrastructure segment's revenues totaled $30.0 million, down 9% on a y-o-y basis. The Company noted that during the reported quarter, higher Road Zipper® system lease revenue and higher sales of road safety products in international markets were more than offset by lower Road Zipper® system project sales and lower sales of US road safety products.
Cash Matters
Lindsay's cash and cash equivalents as of August 31, 2017, were $121.6 million compared to $101.2 million as of August 31, 2016. The Company did not make any share repurchases during Q4 FY17. Lindsay had a total of $63.7 million available under its share repurchase program as of August 31, 2017.
On October 13, 2017, Lindsay announced that its Board of Directors has declared a regular quarterly cash dividend of $0.30 per share, payable November 30, 2017, to shareholders of record on November 16, 2017.
Lindsay's backlog of unshipped orders at August 31, 2017, was $51.8 million compared with $50.7 million at August 31, 2016. The Company observed that higher order backlog in the irrigation segment was partially offset by lower order backlog in the infrastructure segment compared to the end of FY16.
Outlook
Lindsay noted that commodity prices have stabilized, but are expected to remain under pressure, as generally favorable weather conditions during the 2017 growing season are expected to result in above average crop production levels and ending stocks. The Company stated that the latest USDA estimate of net farm income for 2017 is projected to be 3% higher on a y-o-y basis, following three years of significant decline.
Lindsay is expecting modest growth in its US irrigation business in the upcoming year. The Company also expects continued growth in international irrigation markets. In its infrastructure business, the Company is forecasting continued global growth in Road Zipper® system sales and leasing as well as its road safety products.
Stock Performance
Lindsay's share price finished yesterday's trading session at $89.13, advancing 1.48%. A total volume of 91.53 thousand shares have exchanged hands, which was higher than the 3-month average volume of 82.55 thousand shares. The Company's stock price rallied 0.07% in the last one month, 4.64% in the past six months and 13.66% in the previous twelve months. Additionally, the stock surged 19.46% since the start of the year. Shares of the Company have a PE ratio of 38.63 and have a dividend yield of 1.35%. The stock currently has a market cap of $959.04 million.
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