Lindsay Q4 Results Rise, But Miss Estimates - Update

(RTTNews) - Irrigation equipment maker Lindsay Corp. (LNN) Thursday reported a higher fourth-quarter profit, reflecting 16 percent increase in revenues. However, earnings per share as well as revenues missed analysts' expectations.

The company said its irrigation equipment business saw strong demand in international markets, while it experienced a slowing of orders in the U.S. irrigation markets in its traditionally slower fourth quarter.

Rick Parod, president and chief executive officer of the company said, "We anticipate lower U.S. irrigation sales in 2014 due to lower commodity prices and challenging comparisons to the prior year. Demand in international markets appears more stable..."

The firm noted that it is positioned for profitable growth in its infrastructure business, following implementation of the recent restructuring.

In the fourth quarter, the company's net income increased to $10.43 million or $0.81 per share from $8.76 million or $0.68 per share in the prior-year quarter. On average, eight analysts polled by Thomson Reuters expected earnings per share of $0.91 for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter climbed 16 percent to $148.4 million from $127.82 million a year earlier, but came below analysts' estimate of $155.68 million.

Total irrigation equipment revenues increased 19 percent helped by strong demand in international markets, while the U.S. irrigation revenues decreased 4 percent.

Gross margin improved to 26 percent from 25.6 percent in the preceding year.

For the fiscal year ended August 31, 2013, the company posted net income of $70.57 million or $5.47 per share, higher than $43.28 million or $3.38 per share in the prior year. Annual revenues grew 25 percent to $690.85 million.

As at August 31, 2013, backlog of unshipped orders was $66.5 million, compared with $57.1 million at the same period in 2012. LNN is currently trading at $76.92, down 3.93 percent on the NYSE.