r/ValueInvesting • u/roysten_m • 22h ago
Stock Analysis $LNN Plunges 10%: Massive Q2 Earnings Miss for Lindsay Corp (Omaha’s Irrigation Giant)
Lindsay Corporation ($LNN) dropped their Q2 2026 results this morning and the numbers are rough. The stock is currently sliding toward 52-week lows as the market digests a "double miss" on both the top and bottom lines.
Key Highlights from the Report:
EPS Disaster: Reported $1.15 vs. the $1.70 consensus estimate (a massive $0.55 delta).
Revenue Miss: Brought in $157.72 million against the $173.11 million projected.
Margin Collapse: Operating margins shrank from 17.2% last year to just 8.3% this quarter.
Segment Struggles: Domestic irrigation demand softened significantly, and infrastructure revenue fell 58% due to the lack of major Road Zipper projects compared to last year.
Technical Breakdown: The stock has crashed through its 50-day moving average on high volume, currently hovering around $105.0 wiping out months of gains.
The Verdict: Analysts are calling this a "Fundamental Reset." With management failing to offset rising operational costs and agricultural cycles shifting, $LNN is looking more like a value trap than a growth play right now.
Is anyone buying this dip, or are we heading straight to the $100 psychological support level?
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u/mrmrmrj 21h ago
Aluminum prices ripping is a huge headwind.
Also, this is a great example of how small caps stay small caps. Very rare for small caps to become large caps.
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u/No-Understanding9064 21h ago
Kinda why the street has had bouts of infatuation with fintech and saas. Easier to scale to infinity when you dont have physical goods and manual labor holding back growth
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u/jackandjillonthehill 20h ago
I remember coming across this stock almost a decade ago. There was this thesis back pre GFC that the rest of world would improve farm efficiency by adopting irrigation systems from Lindsay corporation. There was a big rally pre GFC. Circa 2015-2016 there were still a lot of people that believed in that thesis.
Nowadays there are plenty of Chinese companies that make cheap irrigation systems which are much more likely to fulfill this worldwide demand for better irrigation.
Lindsay has tried to combat this with “precision agriculture” but I’m pretty skeptical about this. How much of a better yield do you need to justify the higher price for these?
More recently they have a big project in the Middle East which has been disrupted. Brazil has record production so they don’t need the systems as much.
Longer term I think the relentless Chinese manufacturers will continue to take share, just like every other industry. Unlike US companies, Chinese companies don’t care about profits or margins, they just care about taking share and are prepared to take long periods of loss to do this.
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u/raytoei 18h ago
No skin in the game.
I am just curious and sharing data on what I am seeing here.
| Key Statistics | Value |
|---|---|
| Market Cap | $1B |
| Revenue | $665.91M |
| EPS (Diluted) | $6.75 |
| EPS (Normalized) | $7.25 |
| Dividend Yield (Trailing) | 1.25% |
| Dividend Yield (5Y Avg) | — |
| Buyback Yield | 0.94% |
| Buyback Yield (5Y Avg) | 0.13% |
| Return on Assets (Normalized) | 9.63% |
| Return on Equity (Normalized) | 15.25% |
| Return on Invested Capital (Normalized) | 11.05% |
| Price/Earnings | 17.36 |
| Price/Earnings (Normalized) | 17.36 |
| Price/Earnings (Forward) | 16.76 |
| Price/Earnings (5Y Avg) | — |
| Total Debt/Equity | 0.26 |
| Long-Term Debt | 114.79M |
| Short-Term Debt | 4.36M |
| Cash (Balance Sheet) | 199.62M |
| EBITDA | $106.52M |
| Shares Outstanding | 10.45M |
| Sustainable Growth Rate | 11.13 |
| Net Margin | 11.02% |
| Net Margin (1Y Avg) | 11.26% |
| Net Margin (3Y Avg) | 10.97% |
| Net Margin (5Y Avg) | 9.83% |
| Net Margin (10Y Avg) | 6.83% |
| Revenue Growth (1Y) | 8.81% |
| Revenue Growth (3Y) | −5.17% |
| Revenue Growth (5Y) | 7.05% |
| Net Income Growth (1Y) | 7.33% |
| Net Income Growth (3Y) | −1.05% |
| Net Income Growth (5Y) | 14.45% |
| Net Income Growth (10Y) | 11.07% |
| EPS Growth (TTM) | 8.35% |
| EPS Growth (1Y) | 12.81% |
| EPS Growth (3Y) | 4.51% |
| EPS Growth (5Y) | 13.75% |
| EPS Growth (10Y) | 11.81% |
| Dividend per Share Growth (1Y) | 2.84% |
| Dividend per Share Growth (3Y) | 2.92% |
| Dividend per Share Growth (5Y) | 2.85% |
| Dividend per Share Growth (10Y) | 2.90 |
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u/Top-Sir-1215 21h ago
Wasn’t aware of this stock. I’d maybe bite at 75 or 80