NEW YORK (TheStreet) -- Lindsay Corp. (LNN - Get Report), a leading provider of irrigation systems and infrastructure products, announced results for its second quarter ended February 28, 2014, before today's market open.
The company said second quarter fiscal 2014 revenues were $152.8 million, versus $175.5 million of revenues in the same prior year period. Net earnings were $13.5 million or $1.04 per diluted share compared with $19.4 million or $1.50 per diluted share in the prior year.
Total irrigation equipment revenues decreased 16% to $135.9 million from $162.7 million in the prior fiscal year's second quarter primarily due to lower crop prices. U.S. irrigation revenues of $92.8 million declined 21% while international irrigation revenues of $43.1 million decreased 5%.
Infrastructure revenues increased 32% to $16.9 million with increases in all of its product lines.
TheStreet Ratings team rates LINDSAY CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LINDSAY CORP (LNN) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 17.1%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- LNN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.66, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market on the basis of return on equity, LINDSAY CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- LINDSAY CORP's earnings per share declined by 31.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, LINDSAY CORP increased its bottom line by earning $5.47 versus $3.38 in the prior year. For the next year, the market is expecting a contraction of 21.2% in earnings ($4.31 versus $5.47).
- You can view the full analysis from the report here: LNN Ratings Report