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Feb 28, 2023
Lindsay Q2 2023 Earnings Report
Reported a 24% increase in net earnings driven by operating income growth.
Key Takeaways
Lindsay Corporation reported a 24% increase in net earnings for the second quarter of fiscal year 2023, reaching $18.1 million, with EPS improving to $1.63. This growth was driven by marked expansion in operating income, despite a decline in total revenues compared to the previous year. Improved price realization and reduced inflationary headwinds contributed to operating income growth and margin expansion across both business segments.
Second quarter net earnings increased 24 percent to $18.1 million and EPS improved to $1.63.
Irrigation operating income increased 33 percent despite lower revenues.
Infrastructure operating income improves on increased Road Zipper System® lease revenue.
Operating margin expanded 720 basis points compared to the prior year quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Lindsay Corporation anticipates some impact from market delays in Brazil to continue into their third quarter, but their full year outlook remains unchanged. They are encouraged by the outlook for their infrastructure business due to anticipated increases in U.S. infrastructure spending and the strength of their sales funnel.
Positive Outlook
- Strength in U.S. net farm income supports continued investment in irrigation equipment.
- Demand strength across international markets is supported by expanded production.
- Positive agricultural market fundamentals and continuing global concerns over food security and global grain supplies.
- Anticipated increases in U.S. infrastructure spending.
- Strength of sales funnel.
Challenges Ahead
- Domestic net farm income is projected to decline in 2023 from record levels in 2022.
- Market delays in Brazil are expected to continue into the third quarter.
- Lower revenues in irrigation business were due to international project business in the prior year that did not repeat.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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