Lindsay misses Q1 revenue estimates, expects demand to remain soft

Overview

• Irrigation equipment maker's Q1 revenue fell 6%, missing analyst expectations

• Net earnings for Q1 decreased 4% yr/yr

• Company completed $30 mln share repurchases during the quarter

Outlook

• Lindsay expects $70 mln revenue from MENA irrigation project this fiscal year

• Company anticipates North America irrigation market conditions to remain soft

• Lindsay foresees growth in Brazil despite credit constraints

Result Drivers

• IRRIGATION MARGINS - Improved margins in irrigation segment due to price management and operational efficiencies despite lower revenues

• INFRASTRUCTURE GROWTH - Infrastructure segment revenues increased 17% driven by higher sales of road safety products

• MENA PROJECT - Secured $80 million irrigation and technology project in MENA region post-quarter, expected to support future revenues

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Lindsay Corp is $131.00, about 10.5% above its January 7 closing price of $118.54

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBwV1gKha

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