Lindsay Corporation (NYSE: LNN) has reported the adjusted earnings per share of $0.59 in the fourth quarter of FY 17, missing the analysts’ estimates for the adjusted earnings per share of $0.64 according to Thomson Reuters. As a result, the stock lost over 3.2% today (as of 11:44AM EDT on October 12th, 2017; Source: Google finance). The company had reported 0.7% fall in the adjusted revenue to $131.84 million in the fourth quarter of FY 17, while overall, the net earnings for the fourth quarter reached $6.3 million compared net earnings of $7.8 million in the corresponding quarter of the prior year.
Moreover, the cash and cash equivalents at the end of the fourth quarter were $121.6 million compared to $101.2 million at the end of the last fiscal year. There were no share repurchases made during the fourth quarter of FY17. A total of $63.7 million remains available under the company’s share repurchase program as of August 31st, 2017. The backlog of unshipped orders at August 31st, 2017 was $51.8 million compared with $50.7 million at August 31, 2016. The higher order backlog in the irrigation segment was partially offset by lower order backlog in the infrastructure segment compared to the end of the last fiscal year.
The latest USDA estimate of net farm income for 2017 is forecasted to be 3% higher than last year, after the three years of significant decline. Further, the grower sentiment in the U.S. is showing signs of improvement and the company expects modest growth in the U.S. irrigation business in the upcoming year. Lindsay Corporation also expects continued growth in international irrigation markets. In the infrastructure business, Lindsay Corporation expects continued global growth in Road Zipper system sales and leasing as well as the road safety products. The longer-term drivers are population growth, expanded food production and efficient water use, and infrastructure upgrades and expansion support.