Lindsay Corporation: Analysts Upgrade Earnings Estimates After Strong Q1
Friday, Jan 10, 2025 2:11 pm ET
3min read
LNN --
Lindsay Corporation (NYSE:LNN) has been making waves in the industrial products sector, and its recent quarterly earnings report has analysts buzzing with optimism. The company reported revenue of $166.30 million, up 3.0% year-over-year, and earnings per share (EPS) of $1.57, topping analysts' expectations by $0.18. This strong performance has led analysts to upgrade their earnings estimates for the full year and beyond.
William Blair analyst B. Drab recently boosted their FY2025 EPS estimates for Lindsay, raising it from $5.81 to $6.02. This upgrade reflects the company's solid performance and the potential for continued growth. Additionally, analysts are forecasting revenue growth of 4.9% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Machinery industry in the US.
Lindsay's strong performance in the recent quarter can be attributed to several key factors:
1. Revenue Growth: Lindsay's revenue growth of 3.0% year-over-year contributed to the earnings beat. This growth was driven by increased demand for the company's products and services.
2. Improved Profit Margin: Lindsay's profit margin increased to 10.91% from 9.3% in the prior year. This improvement in profit margin led to higher earnings and contributed to the overall earnings beat.
3. EPS Beat: Lindsay's EPS of $1.57 exceeded analysts' expectations of $1.39 by $0.18. This EPS beat contributed to the overall earnings beat and reflected the company's strong performance.
4. Strong Performance in the Irrigation Segment: Lindsay's Irrigation segment reported operating income of $24.74 million, up from $21.33 million in the prior year. This strong performance in the Irrigation segment contributed to the overall earnings beat and highlighted the company's growth potential.
Lindsay's strong performance in the recent quarter has analysts optimistic about the company's prospects for the remainder of the year and beyond. The company's growth potential, driven by factors such as revenue growth, improved profit margins, and strong performance in key segments, positions it well for continued success. As investors consider Lindsay Corporation as a potential investment, they should keep an eye on the company's earnings estimates and performance, as well as the broader trends in the industrial products sector.