(By Balaseshan) Lindsay Corp. (NYSE:LNN), a provider of irrigation systems and infrastructure products, reported an increase in third quarter earnings helped by improvements in gross margins. Earnings and revenue came in ahead of Street's expectations.
Earnings for the third quarter were $18.82 million or $1.47 per share, up from $15.29 million or $1.20 per share last year.
Revenue increased 12% to $172.1 million. Analysts had expected a profit of $1.36 per share on revenue of $166.16 million.
Total irrigation equipment revenues grew 18% to $149.6 million. Domestic irrigation revenue climbed 38% to $105.6 million, while international irrigation revenue declined 12% to $44.0 million. Infrastructure revenues fell 15% to $22.5 million.
Gross margin rose to 28.5% from 27.0%, reflecting improvements in gross margins in both the irrigation and infrastructure segments.
Irrigation gross margins increased as a result of favorable sales mix. Infrastructure margins increased due to improved product pricing in road safety and diversified products.
The company said the long term fundamentals of the business remain very positive, as growth drivers of expanded food production and efficient and environmentally friendly water use remain intact.
Infrastructure demand would continue to be challenging and uncertain until global governments commit to more consistent investments in roads and other infrastructure, the company noted.
LNN closed Tuesday's regular session down 0.97% at $56.27. The stock has been trading between $46.03 and $73.03 for the past 52 weeks.