Tag - Lnn

Small-cap stocks tumbled once again Thursday, unable to shrug off fears of an economic recession amid a global credit contagion. For the second consecutive session, the market also was unable to gain bullish traction on a promising morning rally. The Russell 2000 (NYSE:IWM) shed 47.36, or 8.67%, to 499.20, which marked the lowest daily close since Sept. 30, 2003. For the year, the Russell is now down 34.8%, while the Dow is off 35.3% and the S&P 500 is down 37.4%. The Russell has now closed lower seven consecutive sessions, and 9 of 10. In those 10 days, small caps have collapsed 29.2% in one of the most relentless and powerful bearish displays in market history.

Small-cap stocks continue to under perform the large-cap products through the teeth of this collapse. Just three weeks ago, the Russell 2000 was only down 1.6% for the year, while the Dow was down 14.1%, so the percentage loss spread between the two favored the Russell by 12.5%. Now, the difference is less than 1%. Clearly, the market has made a powerful statement that small caps are seen as more risky during a runaway bear market collapse. Small caps led the way up on the bull market move and they have been leading the way down the last 14 days of trading.

Normally, you can track money flow along asset lines. For example, the recent stock market crash has often sent money zinging into Treasury products, or gold funds for safe-haven status. Just how deep did the selling mentality run today? Stocks were down, Treasuries were down, crude oil was down, the CRB was down, even gold was down. There were no safe asset classes upon which to turn. It certainly was one of the few times one would ever see a huge decline in stocks along with a decline in Treasuries and commodities.

Once again, the market was unable to sustain buying interest despite more “good” news on the interest rate front. Overnight, several Asian central banks joined in on the rate cut frenzy, with Taiwan, South Korea and Hong Kong joining a move that saw coordinated central bank moves from the U.S., England, Eurozone, Sweden, Canada, Switzerland and even China the previous day. It didn’t save the market . . .

Shares of Lindsay Corp. (NYSE:LNN) fell by 5.4% this morning despite the company’s nearly tripling its fiscal fourth-quarter earnings and widely beating analysts’ estimates.

For the quarter ended Aug. 31, the Omaha, Neb.-based provider of irrigation systems and infrastructure products said before the bell this morning that it earned $11.3 million, or $0.90 per share, compared with $3.8 million, or $0.32 per share, in the prior-year period.

Analysts polled by Thomson First Call on average were expecting earnings per share of $0.70.

Despite the improved performance, Lindsay Corp. noted that during the past few weeks, agricultural commodity prices have dropped significantly in the midst of a reduction in the availability of financing — factors that could impact potential customers’ ability to buy and finance irrigation equipment.

By midday, Lindsay Corp. is $52.98, down 3.02 from Tuesday’s close. More than 700,000 shares had changed hands compared with an average three-month volume of 433,606.

The stock has traded as low as $43.52 and as high as $131.14 in the past 52 weeks.

For detailed price information and news stories on Lindsay Corp., click LNN.

Small caps declined after the opening, made a brief resurgence during the second hour of regular trading but have continued their descent in the afternoon. Concerns about the financial sector and FedEx Corp.’s (NYSE:FDX) warning that low demand and high fuel costs will impact profits kept investors gloomy. At 1:39 p.m. ET, the Russell 2000 (NYSE:IWM) was off 9.03, or 1.23%, at 727.54.

Regional banks are taking a beating, with Marshall & Iisley Corp. (NYSE:MI) sinking 4% to a new 52-week low on analyst downgrades while Zions Bancorporation (Nasdaq:ZION) also set a fresh 52-week low, losing about 3%. Unfortunately, the news remains depressing for banks and other financial stocks, with Fifth Third Bancorp (Nasdaq:FITB) losing 14% during the afternoon session. Within the financial arena, large-cap futures and commodities broker MF Global (NYSE:MF) is plunging some 38% after the Bermuda-based firm said revenues were below the forecast and news that the company will sell convertible securities to raise capital and . . .

Provider of irrigation systems and infrastructure products Lindsay Corp. (NYSE:LNN) reported an increase in fiscal third-quarter earnings this morning; however results substantially missed the consensus on Wall Street, sending shares into a tail spin.

On the positive, total revenues increased 54% from the year-ago quarter and managed to beat the Street, as total irrigation equipment revenues increased 60%, domestic irrigation revenues increased 46% and international irrigation revenues increased 95% from the prior year’s quarter.

Shares plummeted 27%, or $32.82, to $91.61 in pre-market trading. For detailed price information and recent news stories about Lindsay, click LNN.

Lindsay Corporation (NYSE:LNN)
Omaha, Neb.
http://www.lindsaymanufacturing.com

52-week low / high: $29.78/$131.14
Shares Outstanding: 11.92 million
Market Capitalization: $1.21 billion

Who knew that crop irrigation and traffic flow could be such a fateful match? Lindsay Corporation (NYSE:LNN) has successfully melded the two segments under its umbrella of self-propelled center pivots and crash cushions, proving that a love affair between apples and oranges can exist under the right conditions.

Lindsay manufactures the joints of the irrigation industry – in the form of lateral move irrigation systems and self-propelled center pivots, both used to stabilize crop production while preserving water, energy and labor. These products are marketed domestically and internationally under its Zimmatic brand. Lindsay also makes separate lines of center pivot and lateral move irrigation equipment for use on smaller fields under its Greenfield and Stettyn brands, and hose reel travelers under the Perrot brand.

If that’s not enough to get you thinking of “greener” pastures, the company also produces irrigation controls, mini-pivots, hose reel travelers, and chemical injection systems and remote monitoring and control systems, which include remote telemetry and a Web or personal-computer-hosted data acquisition and monitoring application.

For investors wanting to plant a more industrial seed in their portfolios, Lindsay dabbles in not only irrigation, but also infrastructure. This segment produces and markets large diameter steel tubing, movable barriers for traffic lane management, and crash cushions (used at toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, reflective pavement tapes and other road safety devices). The company also provides outsourced manufacturing and production services to other businesses.

Lindsay’s recent results are a resounding green light to financial success. Buckle your seatbelts, profits ahead: net income for the three months ended Feb. 29, 2008 jumped a whopping 288% to $9.7 million, or $0.79 per share, from $2.5 million, or $0.21 per share. Lindsay's gross margin improved to 27.7% from 22.7% a year ago, while revenue soared more than 70% to $108.4 million. The company’s EPS of $0.79 beat the consensus by 132%. Quarterly results included revenue from recently acquired businesses Watertronics Inc. (a leader in water pumping stations and controls for the golf, landscape and municipal markets) and Snoline SpA.

"Demand for irrigation equipment is strong globally, supported by higher commodity prices, biofuel expansion and water initiatives," says Rick Parod, Lindsay's president and chief executive officer. "Infrastructure segment demand for the unique solutions provided by our products is also strong, and we continued to realize synergies from the acquisitions in this segment during the period."

With Lindsay’s segments flirting with robust demand for irrigation products in 2008 both domestically and internationally, and consistent growth of roads and highways, the pair sound like a match made in investor heaven.

For more information on the company, read Lindsay Corporation: The rainmaker.

Note: Lindsay Corporation (NYSE:LNN) is on the "Watch List" of Growth Report, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, Lindsay displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Growth Report portfolio at a later date.

The Russell 2000 (NYSE: IWM) has stayed in the green, extending a rebound from its morning lows. At 2:49 p.m. ET, the small-cap index had climbed 2.18 points, or 0.31%, to 701.08. The Dow Jones Industrial Average (INDU) had added 30.16 points, or 0.25%, to 12,212.29.

The bulls have returned to Wall Street as stocks shake off their earlier losses and investors go bargain-hunting. The Russell 2000 moved into positive territory shortly before 1 p.m. ET, after spending the first half of the session in the red following news of more credit problems stemming from the stagnating U.S. housing sector.

Insurer American International Group Inc. (NYSE: AIG) announced before the start of trading that it may have to write off billions in mortgage debt and would need to change the way it values its credit default swaps involving collateralized debt obligations.

Elsewhere, Sunnyvale, Calif.-based Yahoo! Inc. (Nasdaq: YHOO) reported before the opening that it will reject a $42 billion takeover bid from Microsoft Corp. (MSFT), arguing that the offer is too low.

Corn prices are busting out all over, and so are shares of Lindsay Corp. (NYSE: LNN). Its irrigation systems make the rain that feeds the crops that keep farmers walking on air.

Lindsay has been making rain since 1955, when it started improving yields by making irrigation systems for various crops in different terrains and soils. Taking its name from its location—Lindsay, Neb., at the center of the United States—the company claims headquarters in Omaha. Now, Lindsay designs large scale, technologically advanced systems, and has become a global force in irrigation. Its main products are center pivot systems that propel irrigation equipment up and down hills. Its irrigation operations increase crop yields, conserve water and reduce labor and other costs.

Bin-busting profits make farmers more willing to put money into irrigation, which ensures output against nefarious weather. A new mouth to feed—the biofuel industry—and expansion overseas should earn profits for Lindsay in the near term and for several years to come.

Farm fortunes are notoriously volatile and cyclical, though. Lindsay has responded by accelerating its second division, infrastructure, to smooth these seasonal factors. Figuring that a growing world population will increase the need to ease road traffic and improve motorist safety, Lindsay makes equipment such as movable barriers, crash cushions and specialty barriers through its recently acquired subsidiaries, Barrier Systems Inc. and Snoline S.P.A.

Lindsay has succeeded in an industry that has undergone significant consolidation in the past few years. This means the company needs to continuously upgrade its offerings to compete. Helped by the resurgent agricultural marketplace and the returns from its infrastructure business, Lindsay has so far proven it is up for the challenge.

Lindsay Corp. (NYSE: LNN) shares are up after the provider of irrigation systems announced before the opening fourth-quarter revenue of $73.5 million, above analyst estimates of $93.2 million and up 30% from $56.6 million a year earlier. The Omaha, Neb.-based firm’s earnings for the three months ended Aug. 31 were $3.8 million, or $0.32 a share, from $3.1 million, or $0.26 per share, during the year-ago period.

“Demand for irrigation equipment improved with higher global commodity prices, new Middle East projects and an improvement in Mexico following delayed government support programs earlier in the year,” CEO Rick Parod said in a statement.

Lindsay’s backlog of unshipped orders at Aug. 31 was $49.4 million, compared with $26.8 million at Aug. 31.

In morning trading, LNN shares are up 0.35%, or $0.16, at $46.24. Over the last 52 weeks, shares have ranged from $28.55 to $50.65.

Irrigation systems maker Lindsay Corp. (NYSE: LNN) soared to a new 52-week high after reporting before the opening of trading a 17% increased in third-quarter earnings.

Strong commodity prices helped fuel the improvement, company officials said.

“Strong agricultural commodity prices driven in part by demand for ethanol have created improved conditions for farmers, which has improved the market for capital goods like irrigation equipment,” said CEO of Lindsay Corp. Rick Parod on a conference call Wednesday.

For the fiscal third quarter ended May 31, 2007, Lindsay recorded net earnings of  $7.5 million, or $0.62 per diluted share, up 17% from $6.4 million, or $0.55 per diluted share, in the third quarter of last year. Irrigation equipment revenues 9% to $75.4 million, compared with $69 million in same period last year. 

Lindsay expanded its revenue base with acquisitions of Barrier Systems Inc. (BSI) in the fourth quarter of fiscal 2006 and Snoline second quarter of fiscal 2007. Infrastructure revenues surged to $17.7 million from $6.0 million in the third quarter last year on the inclusion BSI and Snoline.