Lindsay Stock Slips After Q4 Earnings Miss, Thin Margins
- Lindsay Corp (NYSE: LNN) reported fourth-quarter FY21 operating growth of 19.7% year-over-year to $153.65 million, beating the consensus of $141.88 million.
- Sales by segments: Irrigation $125.25 million (+62.6% Y/Y) and Infrastructure $28.39 million (-44.7% Y/Y).
- The increase in international irrigation revenues resulted primarily from higher unit sales volumes, higher selling prices, and a favorable foreign currency translation impact of $2.8 million. The notable sales volume increases were in Brazil and Middle East markets.
- Infrastructure segment revenue decline resulted primarily from lower Road Zipper System sales.
- EPS decreased to $0.53 from $1.35 in 4Q20, missing a consensus of $0.79.
- The gross margin contracted by 1,348 bps to 21.8%. The operating income decreased by 46% Y/Y to $9.42 million, and the margin contracted by 746 bps to 6.1%.
- Lindsay generated cash from operating activities for the fiscal year of $43.97 million, compared to $46.03 million a year ago.
- "In our infrastructure business, we expect a slower start to fiscal 2022 due to specific project delays. However, prospects for year-over-year growth are supported by the quality of our project sales funnel," said CEO Randy Wood.
- Price Action: LNN shares are trading lower by 4.80% at $151.65 on the last check Thursday.
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