Lindsay Corp (NYSE:LNN) stock fell 5.20% (As on April 5, 11:55:09 AM UTC-4, Source: Google Finance) after the company misses the topline expectations for the second quarter of FY 23. Lindsay’s main segment is in irrigation equipment, which one would think would be booming right now, given the rise in food prices around the world. However, the company is lapping some difficult comparables from the prior-year quarter, especially in its international segment. While U.S. sales were only down 10%, international sales were down 28% from last year. This is due to lower sales to Russia and Ukraine, as well as the lapping of a large project in Egypt that did not repeat this year. Moreover, the recent election of a new government in Brazil caused delays to purchases from Lindsay’s Brazilian customers, as South American farmers look for more clarity on government policies. In addition, the rapid rise in interest rates and fears of an economic slowdown are causing farmers to generally be more cautious about their capital investments. Yet on the bright side, it appears Lindsay is reaping the benefits from lower input prices of commodities such as steel, all while keeping its equipment pricing generally in line. The spike in commodity prices caused a big margin compression last year, but the company is seeing relief on input costs today; therefore, Lindsay impressively managed to grow operating profits, even in a quarter in which sales were down markedly. The irrigation and infrastructure equipment manufacturer’s revenue fell to $166.2 million from $200.1 million, below the $192.6 million projected by five analysts in a Capital IQ poll.

In addition, the company has a smaller infrastructure segment, which made up about 11% of sales last quarter. This segment includes road safety equipment that is used when working on roads and bridges, and should be a beneficiary of the infrastructure spending over the next few years from laws that have already been passed by the government. Infrastructure segment revenue was down 5% year over year to $18.5 million, driven by lower sales of road safety products.

LNN in the second quarter of FY 23 has reported the adjusted earnings per share of $1.63, beating the analysts’ estimates for the adjusted earnings per share of $1.43, according to Zacks Investment Research. The company had reported the adjusted revenue of $166.2 million in the second quarter of FY 23, missing the analysts’ estimates for revenue of $187.5 million.