Why Lindsay Corporation's Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of irrigation system maker Lindsay Corporation (NYS: LNN) jumped 10% today after the company released earnings.
So what: Fiscal third-quarter revenue was $172.1 million and came in ahead of the $166.2 million analysts had expected. Earnings per share rose to $1.47 from $1.20 a year ago and topped the $1.36 analysts had expected.
Now what: Domestic irrigation revenue drove earnings this quarter, rising 38% from a year ago, so the company's biggest market is looking strong. Shares now trade at just 16.7 times trailing earnings -- a reasonable price, considering the 12% rise in revenue this quarter. I think shares can rise further as margins improve and profitability continues to rise.
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The article Why Lindsay Corporation's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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