Wednesday, Lindsay Corp. (LNN), a provider of automated agricultural irrigation systems, announced a surge in third quarter profit on lower income tax expenses due to a correction and 54% increase in revenue. In the morning session, shares were down more than 18%.
Lindsay recorded quarterly net earnings of $14.107 million compared to $7.477 million last year. Earnings per share rose to $1.15 from $0.62 per share in the prior year. The company noted that tax correction resulted in reduction of income tax expenses of approximately $1.1 million and $0.09 per share for the third quarter.
On average, two analysts polled by First Call/Thomson Financial expected the company to earn $1.22 per share.
Quarterly revenue increased to $143.562 million from $93.147 million in the previous year. Operating income came in at $20.450 million, up from $11.514 million in the year ago period.
For the first nine-months, net profit climbed to $28.153 million from $11.772 million last year. Earnings per share were $2.29 compared to $0.99 in the previous year.
Revenue for the period was $327.91 million, up 57% from $208.353 million in the previous year. Operating income came in at $42.819 million compared to $17.836 million in the previous year.
Looking ahead, the company expects long-term growth from infrastructure segment on higher demand for unique road safety products.
LNN is currently trading at $101.08, down $23.23 or 18.80% on a volume of 2.54 million shares.
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