Lindsay Corporation Shares Plunged: What You Need to Know
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What: Shares of agricultural equipment maker Lindsay Corporation (NYS: LNN) are off by as much as 10% today after the company reported results for the fourth quarter and full fiscal 2011 this morning.
So what: Fourth-quarter revenue came in at $116.1 million, jumping by a third from last year, and resulted in net income of $5.9 million, or $0.46 per share. The report was a mixed bag as revenue beat analysts' estimates while earnings per share fell short. Analysts were looking for $108.5 million in sales and $0.61 in earnings per share.
Now what: The bottom line took a hit from a 27% rise in operating costs. For the full year, revenue tallied up to $478.9 million, up 34% from the prior year. Lindsay CEO Rick Parod attributed the increase in costs to needed investments in operating systems. Acknowledging macro uncertainties, the company is encouraged by positive farmer sentiment and higher commodity prices. According to Parod, "Growth drivers of expanded food production and efficient and environmentally friendly water use remain very positive for our business, long-term."
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