Lindsay (LNN) to Report Q3 Results: What's in the Cards?
Lindsay Corporation LNN is scheduled to report third-quarter fiscal 2023 results on Jun 29, before the opening bell.
A Peek at 2Q23 Results
In the last reported quarter, Lindsay’s earnings beat the Zacks Consensus Estimate whereas the sales missed the same. The bottom line improved year over year while the top line declined. The company has a trailing four-quarter average earnings surprise of 22.1%, on average.
Lindsay Corporation Price and EPS Surprise
Lindsay Corporation price-eps-surprise | Lindsay Corporation Quote
Which Way are Estimates Trending?
The Zacks Consensus Estimate for Lindsay’s earnings per share is pegged at $2.17 for the third quarter of fiscal 2023, suggesting a 4.8% fall from that reported in the prior-year quarter. The consensus estimate for total revenues is pinned at $209.7 million for the quarter, indicating a year-over-year fall of 2.1%.
Let’s see how things have shaped up before the announcement.
Key Factors to Consider
Soybean prices have been impacted lately due to an expected surge in production amid a weak demand backdrop. Imports have declined in China, which is a top consumer. Corn prices were also impacted due to an improving supply outlook. As per the USDA, global corn production is expected to reach a record high in the 2023/2024 marketing year, with solid growth in output in North and South America. Corn production in the United States is expected to touch a record high of 15.3 billion bushels. Supply from Argentina is also expected to increase.
Cancellations of large export orders to China also impacted corn prices. Given that corn and soybean are the most important grains for cash crop farming, this is likely to have impacted order levels for Lindsay in the fiscal third quarter.
However, the pressing need to replace aging equipment is likely to have supported demand for the company.
The company’s Infrastructure segment is anticipated to have gained from higher sales of road safety products and Road Zipper System project sales in the quarter under review. However, the segment’s revenues are likely to have been partially offset by lower Road Zipper System lease revenues.
Lindsay has been witnessing a rapid increase in input costs. Constraints on the availability of raw materials, labor and trucking resources have led to higher lead times for deliveries. Inflationary pressures and supply-chain challenges are likely to have persisted in the quarter to be reported.
These factors are expected to have impacted margins in the third quarter of fiscal 2023.
Earnings Whispers
Our proven model doesn’t conclusively predict an earnings beat for Lindsay this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Lindsay is 0.00%.
Zacks Rank: Lindsay currently carries a Zacks Rank #4 (Sell).
Price Performance
Lindsay’s shares have gained 3% in the past year, compared with the industry’s 30.2% growth.
Image Source: Zacks Investment Research
Stocks That Warrant a Look
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Deere & Company DE, expected to release earnings on Aug 18, has an Earnings ESP of +2.32% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deere’s fiscal third-quarter earnings is currently pegged at $8.14 per share, suggesting a year-over-year improvement of 32.1%.
Caterpillar Inc. CAT, expected to release earnings on Aug 1, has an Earnings ESP of +0.05%.
The Zacks Consensus Estimate for CAT’s earnings for the second quarter is pegged at $4.52 per share. It currently carries a Zacks Rank of 3.
Eaton Corporation plc ETN, expected to release earnings on Aug 1, has an Earnings ESP of +0.48%.
The consensus estimate for Eaton’s earnings for the second quarter is currently pegged at $2.09 per share. ETN currently carries a Zacks Rank of 3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Caterpillar Inc. (CAT) : Free Stock Analysis Report
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
Lindsay Corporation (LNN) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
