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Lindsay (LNN) to Report Q4 Earnings: A Beat in the Cards?

Zacks

Lindsay Corporation LNN is scheduled to report fourth-quarter 2017 (ended Aug 31, 2017) results on Oct 12, before the opening bell. Last quarter, the company’s adjusted earnings improved 13% and revenues rose 7% as the company saw improvement in both irrigation and infrastructure revenues.

Domestic irrigation revenues is lately benefiting from higher volume while international irrigation revenues is riding on the back of the recovery in Brazil and increased project activity in developing markets.

Earnings Surprise History

Lindsay has surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The company has an average positive surprise of 3.3%.

Lindsay Corporation Price and EPS Surprise

Lindsay Corporation Price and EPS Surprise | Lindsay Corporation Quote

Let’s see how things are shaping up for this announcement.

Earnings Whispers

Our proven model shows that Lindsay is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.

Zacks ESP: Earnings ESP for Lindsay is 15.03%. This is because the Most Accurate estimate of 75 cents is higher than the Zacks Consensus Estimate of 65 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Lindsay carries a Zacks Rank #3. A positive ESP combined with the company's Zacks Rank #3, makes us reasonably confident of earnings beat.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Factors at Play

Lindsay’s backlog in third-quarter fiscal 2017 end was $70.1 million compared with $61.2 million at the end of the prior-year quarter. Stabilization in the U.S. irrigation equipment market, a consistent recovery in Brazil and increased project activity in developing international markets will drive growth. The company also stated that its irrigation operating margin performance in the United States is likely benefit from the strength and growth of technology products. Further, growers’ sentiment in the United States has been displaying signs of improvement.

The company continues to realize benefits from the water-related acquisitions completed over the past few years. These buyouts have helped the company boost gross margins, provided incremental revenue and profits derived from non-agricultural markets, as well as delivered platforms for future growth. Further, the acquisitions in water engineering services integrated pumping systems, filtration, irrigation control systems and machine-to-machine controls provided differentiated value added proposition to customers.

In the infrastructure segment, Lindsay continues to witness strong interest domestically and internationally in Road Zipper System projects, as well as increased demand for its road safety products.

Price Performance



In the past three months, the Lindsay stock has outperformed the industry it belongs to. The company has delivered a return of 1.7%, ahead of the industry’s gain of 0.9%.

Other Stocks to Consider

Here are a few other stocks, which you may consider as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:

Alcoa Corporation AA with an Earnings ESP of +6.80% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ball Corporation BLL, with an Earnings ESP of +2.94% and a Zacks Rank #2.

The Manitowoc Company, Inc. MTW has an Earnings ESP of +29.8% and a Zacks Rank #2.

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