Why Is Lindsay (LNN) Up 7.7% Since Last Earnings Report?

Core Viewpoint - Lindsay's recent earnings report shows a positive trend with earnings per share beating estimates and revenue growth year over year, indicating strong operational performance and potential for continued growth [2][3]. Financial Performance - Earnings per share for Q1 fiscal 2025 were $1.57, exceeding the Zacks Consensus Estimate of$1.34, representing a 15% year-over-year improvement [2]. - Revenue for the quarter was $166 million, up from$161 million in the same quarter last year, meeting the Zacks Consensus Estimate [2]. - The company's backlog increased significantly to approximately $168 million as of November 30, 2024, compared to about$87 million a year earlier [2]. Operational Update - Operating revenues improved by 4.4% year over year to around $116 million, with gross profit remaining flat at$50 million, resulting in a gross margin of 30.1%, slightly down from 31% a year ago [3]. - Operating expenses rose by 0.7% year over year to around $29 million, leading to an operating income of roughly$22 million, up from $21 million in the prior year [3]. Segment Performance - The Irrigation segment's revenues increased by 5$147 million, with North American revenues declining by 13% to about $78 million due to lower unit sales, while international revenues surged by 37$69 million [4]. - The Infrastructure segment's revenues decreased by 9% year over year to roughly $19 million, attributed to timing differences in Road Zipper System lease revenues, but operating income rose by 14$4.1 million [5]. Financial Position - As of the end of Q1 fiscal 2025, Lindsay had cash and cash equivalents of approximately $194 million, an increase from$159 million at the end of Q1 fiscal 2024, with long-term debt remaining stable at around $115 million [6]. Future Outlook - The company anticipates growth in its infrastructure segment for fiscal 2025, driven by a significant Road Zipper System project, although market conditions in North America and Brazil's irrigation markets are expected to remain soft in the near term [7]. - Estimates for the company have remained stable over the past month, with a consensus estimate shift of 7.96% [8]. Investment Scores - Lindsay currently holds a strong Growth Score of A and a momentum score of A, but a value score of C, placing it in the middle 20% for value investment strategy [9]. - The overall aggregate VGM Score for the stock is A, indicating strong performance across multiple investment strategies [9]. Stock Outlook - Lindsay has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [10].