Lindsay (LNN) Closes Sale of Watertronics & LAKOS Businesses
Lindsay Corporation LNN recently completed the sale of its Watertronics and LAKOS businesses in line with the Foundation for Growth initiative. The divestment will simplify its business and help focus on core commercial irrigation and infrastructure sector.
During third-quarter fiscal 2018, Lindsay announced its plan to divest the company’s pump business — Watertronics — a designer and manufacturer of custom pumping solutions for golf, landscape, municipal and agricultural use. The company also decided to sell its filtration business, LAKOS, as well as an irrigation dealership. The combined revenues from these businesses are approximately $70 million annually.
Lindsay is expected to benefit from is focus on Foundation for Growth strategy. Its growth objectives include setting strategic direction, defining priorities and improving overall operating performance. A key financial objective is to achieve operating margin performance between 11% and 12% in fiscal 2020.
Lindsay Corporation Price
Lindsay Corporation Price | Lindsay Corporation Quote
Year to date, shares of Lindsay have outperformed the industry with respect to price performance. The stock has gained 2%, while the industry has recorded loss of around 9% during the same time frame.
Zacks Rank & Stocks to Consider
Lindsay carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same sector are W.W. Grainger, Inc. GWW, iRobot Corporation IRBT and Atkore International Group Inc. ATKR. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Grainger has a long-term earnings growth rate of 12.5%. Its shares have surged 51% year to date.
iRobot Corporation has a long-term earnings growth rate of 19.5%. The company’s shares have gained 49% year to date.
Atkore International has a long-term earnings growth rate of 10%. The stock has rallied 28% year to date.
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