What went wrong with Lindsay Corporation (NYSE: LNN) stock earnings

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Lindsay Corporation (NYSE: LNN) stock fell over 0.3% on April 7th, 2020 (as of 11:17 am GMT-4 ; Source: Google finance) after the company posted mixed earnings for the second quarter of FY 20. The company has reported the net earnings for the quarter of $5.5 million, compared to a net loss of $3.4 million, for the prior year second quarter. LNN in the second quarter of FY 20 has reported the adjusted earnings per share of 51 cents, while adjusted revenue growth of 4 percent to $113.79 million in the second quarter of FY 20.

Moreover, Irrigation segment revenues for the second quarter of fiscal 2020 were $92.1 million, which reflects the decline of 4 percent, compared to $95.8 million in the prior year. North America irrigation revenues had increased 14 percent to $65.7 million, compared to the prior year. The increase was mainly driven on higher sales of replacement parts, increased irrigation equipment unit volume and higher revenue from engineering project services. International irrigation revenues had decreased 31 percent to $26.4 million, primarily due to a large project sale in a developing market in the prior year that did not repeat. Infrastructure segment revenues for the second quarter of fiscal 2020 were $21.7 million, whch represents an increase of 62 percent, compared to $13.4 million in the prior year. The increase is due to higher Road Zipper System sales and lease revenues and an increase in sales of road safety products compared to the prior year. The backlog of unfilled orders at February 29, 2020 was $104.4 million compared to $45.6 million at February 28, 2019. Included in these backlogs are amounts of $5.5 million and $1.1 million, respectively, that are not anticipated to be fulfilled within the subsequent twelve months.

Furthermore, the Irrigation segment operating margin has expanded 10.4 percent of sales in the second quarter, compared to 7.9 percent of sales in the prior year. Operating margin explanation is on back of an increase in North America sales and from improved cost and pricing performance compared to the prior year. Infrastructure segment operating margin has expanded to 29.3 percent of sales in the second quarter, compared to an operating loss of $0.4 million in the prior year.

Additionally, the company has declared a regular quarterly cash dividend of $0.32 per share, which will be payable May 29, 2020, to shareholders of record at the close of business on May 15, 2020. This quarterly cash dividend rate reflects the increase of a 3.2% in the previous quarterly indicated rate of $0.31 per share.

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