Lindsay Corporation LNN announced a strategic partnership with Pessl Instruments. The agreement will focus on integrating Pessl's field monitoring systems with LNN's FieldNET remote irrigation management solutions.
Pessl Instruments is a manufacturer and provider of advanced agricultural technology solutions. It has been globally providing instruments for informed decision-making for nearly four decades.
The combined expertise of Pessl and Lindsay will help integrate advanced technologies and modernize how farmers manage irrigation, logistics, and plant protection. For instance, Lindsay's FieldNET customers will be alerted about new soil moisture and weather monitoring capabilities developed and field-tested by Pessl. This will help growers make better irrigation management decisions.
In addition to supporting farmers in understanding the requirement of crops, the collaboration will enable them to make the correct decision at the right time, thereby saving time and resources.
Lindsay has been benefiting from its strategic initiatives for the past few years. The company is well-poised to benefit from the rising global demand for food due to population growth. The need to replace aging equipment will also support its revenues.
Lindsay delivered earnings per share of $1.63 in second-quarter fiscal 2023, beating the Zacks Consensus Estimate of $1.32. The bottom line rose 23% year over year on increased operating income.
However, the company generated revenues of $166 million in the quarter, down 17% from the $200 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $188 million.
Although domestic net farm income in 2023 is expected to fall from the record levels reported in 2022, overall income is high. The company expects this to support further investments in irrigation equipment.
Lindsay’s shares have declined 5.1% in the past year compared with the industry’s fall of 2.1%.
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Zacks Rank & Stocks to Consider
Lindsay currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. WOR, The Manitowoc Company, Inc. MTW, and Pentair plc PNR. WOR and MTW flaunt a Zacks Rank #1 (Strong Buy) at present, and PNR has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 23.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 15.4% in the last year.
The Zacks Consensus Estimate for Pentair’s 2023 earnings per share is pegged at $3.66, up 3% in the past 60 days. It has a trailing four-quarter average earnings surprise of 7.2%. PNR has gained 14.4% in the last year.
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