UPDATE: Lindsay Posts Lower Q1 Profit
Lindsay Corp.(NYSE: LNN) reported a drop in its earnings for the fiscal first quarter.
The Omaha, Nebraska-based company posted quarterly net income of $7.6 million, or $0.62 per share, compared to $10.2 million, or $0.79 per share, in the year-ago period.
Its revenue fell to $134.8 million from $147.7 million in the period. However, analysts were estimating a profit of $0.76 per share on revenue of $136.75 million.
Total irrigation equipment revenue slipped 11% to $114.7 million from $129.2 million. U.S. irrigation revenue dropped 21% to $62.7 million. Infrastructure revenue gained 9% to $20.1 million.
Gross margin widened to 27.4% of sales from 27.2% of sales, while operating expenses rose $0.8 million to $25.0 million.
Lindsay repurchased 381,619 shares for $30.0 million during the quarter.
At November 30, 2014, backlog of unshipped orders was $68.3 million, versus $86.6 million at November 30, 2013 and $79.6 million at August 31, 2014.
Rick Parod, president and chief executive officer, commented, “The U.S. irrigation market contraction continued in the quarter as lower commodity prices, uncertainty surrounding renewal of tax incentives, and lower farm incomes affected farmers' sentiment regarding equipment purchases. We expect the current market challenges in agriculture to continue into calendar 2015. On the positive side, our infrastructure business has continued to improve at both the top and bottom line as we develop our sales pipeline and improve our margin structure.”
Lindsay shares fell 2.42% to close at $83.08 yesterday.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.