What Hedge Fund Analysts Are Saying About Lindsay Corp.

Jan. 2.14 | About: Lindsay Corporation (LNN)

Lindsay Corporation (NYSE:LNN) stock was mostly flat throughout 2013 edging up slightly from $81.38 to $82.75. The American manufacturer known for irrigation systems and infrastructure solutions is scheduled to report its FQ1 2014 earnings before the market opens on Thursday, January 3.

The information below is derived from data submitted to the Estimize platform by a set of Buy Side and Independent analyst contributors.image

The current Wall Street consensus expectation is for LNN to report 91 cents EPS and $141.19M revenue while the current Estimize consensus from Buy Side and Independent contributing analysts is 88 cents EPS and $141.60M revenue.

The Estimize consensus is more accurate than Wall Street up to 69.5% of the time because it represents unbiased market expectations. By tapping into a wider distribution of over 3,300 contributors including hedge funds and independent analysts as well as students and non professionals, Estimize is better able to capture the true market outlook.

The magnitude of the difference between the Wall Street and Estimize consensus numbers often identifies opportunities to take advantage of expectations that may not have been priced into the market. In this case, we are seeing an average differential between the two groups' consensuses. imageimage

Over the past four months, the Wall Street consensus trend for EPS has dropped from $1.06 to 91 cents while Wall Street revenue expectations have increased from $138.5M to $141.19M. The Estimize EPS consensus remained flat at 88 cents and the Estimize revenue consensus has also remained unchanged at $141.60M.


The distribution of estimates published by analysts on Estimize range from 84 cents to 90 cents EPS and $140.59M to $143.00M in revenues. This quarter our community is expecting similar revenue numbers to Wall Street but our analysts are forecasting less profit. This quarter we are seeing a fairly narrow distribution of estimates for Lindsay Corp. The size of the distribution of estimates relative to previous quarters often signals whether or not the market is confident that it has priced in the expected earnings already. A wider distribution signaling the potential for greater volatility post earnings, or smaller vice versa.


The analyst with the highest estimate confidence rating this quarter is JL7913 who projects 90 cents EPS and $143.00M in revenue. Estimate confidence ratings are calculated through algorithms developed by our deep quantitative research, which looks at correlations between analyst track records and tendencies as they relate to future accuracy. This quarter the analyst with the top confidence rating is expecting more revenue and less profit than Wall Street, which is in line with the consensus from our other contributing analysts.

Over the past seven quarters, LNN has beaten Wall Street five times each on revenue and profit. This quarter our community is expecting Lindsay to reverse that trend and come up short on the bottom line.

Disclosure: None.