The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Lindsay beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.
Gross margins dropped, operating margins grew, net margins expanded.
Lindsay reported revenue of $132.1 million. The nine analysts polled by S&P Capital IQ looked for revenue of $128.9 million on the same basis. GAAP reported sales were 10.0% higher than the prior-year quarter's $120.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.00. The nine earnings estimates compiled by S&P Capital IQ predicted $0.81 per share. GAAP EPS of $1.00 for Q2 were 12% higher than the prior-year quarter's $0.89 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.6%, 70 basis points worse than the prior-year quarter. Operating margin was 14.3%, 10 basis points better than the prior-year quarter. Net margin was 9.7%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $160.6 million. On the bottom line, the average EPS estimate is $1.30.
Next year's average estimate for revenue is $531.1 million. The average EPS estimate is $3.49.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 309 members out of 339 rating the stock outperform, and 30 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Lindsay a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lindsay is hold, with an average price target of $67.00.
Over the decades, small-cap stocks like Lindsay have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Lindsay to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.