A farmer confidence chart showed a sudden and dramatic downturn in farmer sentiment post-harvest. This worsening market environment meant a reduction in the company’s irrigation sales. The company’s 2020 objective of 11% to 12% operating margin was based on Lindsay’s view that the fiscal year 2017 represented the trough of the market. Lindsay remained committed to its goal of improving operating margin performance by 300 to 400 basis points.
Analysts expect the company’s earnings to plunge by 54.20% to $0.76 per share and revenue will dip by 23.60% to $129.51 million for the third quarter. In comparison, during the previous year quarter, Lindsay posted a profit of $1.66 per share on revenue of $169.57 million. The company has missed analysts’ expectations thrice in the past four quarters.
For the second quarter, the company slipped to a loss from a profit last year, due to the business divestitures in the irrigation segment as part of its foundation for growth initiative. Revenue dropped by 16% year-over-year.
North America irrigation sales volumes were significantly lower than anticipated as the unresolved US-China trade dispute contributed to a further decline in farmer sentiment. Along with this, lower Road Zipper System sales contributed to a disappointing fourth-quarter.
Shares of Lindsay opened higher on Friday and is trading in the green territory on the NYSE. The stock has fallen over 16% in the past year and over 13% in the past three months.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.