Lindsay Corporation (NYSE: LNN) has reported its fiscal 2024 first quarter results, showing a 8% decrease in total revenues compared to the prior year first quarter. The company's operating income for the quarter was $21.1 million, down 14% from the previous year, and net earnings were $15.0 million, a decrease of 18% from the prior year first quarter. It's shares are up 3% today, now trading at $126.56.
Randy Wood, President and CEO of Lindsay Corporation, commented on the results, "Demand for irrigation equipment in North America improved in the quarter, reflecting increased order activity as grower profitability became more certain post-harvest compared to the delayed investment decisions we had experienced in last year's spring selling season. Quoting activity in international irrigation markets remains active and growing, however revenues for the quarter were lower in South America following the record revenues captured in Brazil in the prior year."
In the irrigation segment, revenues for the quarter decreased by 8% compared to the prior year first quarter, with North America irrigation revenues increasing by 7% and international irrigation revenues decreasing by 25%. The infrastructure segment also saw a decrease in revenues by 12% compared to the prior year first quarter.
Wood also provided an outlook, stating, "While customers will invest cautiously, current farm income projections, moderating inflation and an anticipation of flat to lower interest rates provide a stable backdrop for irrigation equipment demand in North America. We expect sales volume levels in developed international markets, particularly Brazil, to improve over the balance of the year, and we continue to see project opportunities in developing markets supported by continuing global concerns over food security and global grain supplies."
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $547,705 | $444,072 | $474,692 | $567,646 | $770,743 | $674,084 |
| Revenue Growth | n/a | -18.92% | 6.9% | 19.58% | 35.78% | -12.54% |
| Operating Margins | 7% | 1% | 11% | 10% | 12% | 15% |
| Net Margins | 4% | 0% | 8% | 7% | 8% | 11% |
| Net Income (k) | $20,277 | $2,172 | $38,629 | $42,572 | $65,469 | $72,379 |
| Net Interest Expense (k) | $4,687 | $4,767 | $4,759 | $4,751 | $4,269 | -$3,788 |
| Diluted Shares (k) | 10,806 | 10,828 | 10,888 | 11,026 | 11,073 | 11,062 |
| Free Cash Flow (k) | $22,880 | -$19,414 | $46,034 | $17,457 | -$12,547 | $100,932 |
| Current Ratio | 3.92 | 3.73 | 3.48 | 2.88 | 3.24 | 3.58 |
| Total Debt (k) | $116,929 | $116,728 | $116,504 | $116,313 | $116,098 | $115,936 |
Lindsay has growing revenues and a flat capital expenditure trend, low leverage, and irregular cash flows. However, the firm has weak operating margins with a positive growth rate. Finally, we note that Lindsay has positive expected EPS Growth.
