Lindsay Corp's (NYSE:LNN) shares are trading higher by over 23% after it reported Q4 FY23 results.

Lindsay, a global manufacturer and distributor of irrigation and infrastructure equipment and technology, reported revenue of $167.1 million, surpassing the consensus of $157.8 million. Revenue declined 12% Y/Y owing to the infrastructure segment due to the absence of the prior year's Road Zipper System projects. 

Irrigation segment revenue declined by 5% to $143.6 million on a decline in North America (-25% Y/Y) on lower unit sales volumes. 

The company's operating income fell 16% Y/Y to $23.4 million, with margin contracting to 14.0% vs. 14.6% a year ago.

EPS of $1.74 topped the street view of $1.11 in the quarter under review.

As of August 31, 2023, the backlog of unfilled orders was $78.7 million. The company held cash and equivalents of $166.3 million.

"For the full year, I am pleased with our ability to deliver new records in net earnings and earnings per share, as our performance overcame softer revenues compared to last year's record levels. This record earnings and income performance was led by record full year operating income and operating margin in irrigation with gross margin expansion across the business. This improved operating performance, along with effective working capital management, resulted in free cash flow generation that exceeded our objective for the year," said Randy Wood, President and CEO.

So far, in its first quarter of fiscal 2024, the company said it is seeing order levels running ahead of the prior year. Therefore, it expects sales volume levels in developed international markets to remain robust, led by strong demand in Brazil.

"We expect to see a more meaningful positive impact of increased U.S. infrastructure spending on our infrastructure business in fiscal 2024, particularly in Road Zipper System leasing and sales of road safety projects. We also continue to actively manage projects in our Road Zipper System sales funnel, however the timing of when these projects will be executed is difficult to predict." said Wood.

Price Action: LNN shares are up 23.09% at $131.60 on the last check Thursday.