Lindsay beats Q3 operating profit estimates, shares hit over 2-year high

Overview

• Lindsay fiscal Q3 revenue rises 22%, beating analyst expectations, per LSEG data

• Operating income for fiscal Q3 beats estimates, rising 19%, per LSEG data

• International irrigation revenues increase 60%, driven by large project in MENA region

• Shares rise over 5% to $145, highest in more than 2 years

Outlook

• Lindsay expects North America irrigation demand to remain tempered.

• Company sees drought in Midwest as potential catalyst for sales.

• Lindsay cites high interest rates as a challenge in Brazil.

• Company optimistic about international irrigation projects addressing food security.

Result Drivers

• MENA PROJECT - International irrigation revenues surged 60% due to large project in the MENA region, per CEO Randy Wood

• NORTH AMERICA RESILIENCE - North America irrigation revenues increased slightly, showing resilience amid market uncertainty related to tariffs and grain export disruptions

• INFRASTRUCTURE GROWTH - Infrastructure revenues rose 6% driven by higher sales of road safety products

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 $139.00, about 1.2% above its last closing price of $137.29

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nBw492BVna