OMAHA - Lindsay Corporation (NYSE:LNN), known for its agricultural irrigation and infrastructure technology, has declared an increased quarterly cash dividend of $0.36 per share, payable on August 30, 2024, to shareholders on record as of August 16, 2024. This announcement marks a three percent hike from the prior dividend rate of $0.35 per share.
The adjustment elevates the company's annual indicated dividend rate from $1.40 to $1.44 per share. With around 10.9 million shares outstanding, traded on the New York Stock Exchange, this increase reflects a continued commitment to shareholder returns.
Founded in 1955, Lindsay Corporation has been instrumental in developing advanced solutions to support the global demands for food, fuel, fiber, and transportation. Its portfolio of brands includes Zimmatic™, FieldNET™, FieldWise™, FieldNET Advisor™ for agriculture irrigation management, and Lindsay Transportation Solutions with Barrier Systems™, Road Zipper™, and Snoline™ for road safety and traffic flow.
The forward-looking statements in the press release are based on management's current expectations and are subject to various risks and uncertainties. Lindsay Corporation emphasizes that actual results could differ due to numerous factors detailed in their SEC filings. The company has not committed to updating any forward-looking information following this announcement.
This dividend increase is based on a press release statement from Lindsay Corporation. Investors holding shares at the close of business on August 16, 2024, will be eligible for the upcoming dividend payment.
In other recent news, Lindsay Corporation reported its fiscal third-quarter 2024 earnings, noting a decrease in sales due to various market challenges. Despite a decline in North American and international irrigation sales, the company secured a significant contract in the Mideast and North Africa and saw growth in its infrastructure segment.
Net earnings for the quarter were $20.4 million, or $1.85 per diluted share, with consolidated revenues of $139.2 million, marking a 15% decrease year-over-year.
These recent developments include a landmark contract valued at over $100 million in the Mideast and North Africa. Moreover, the company is investing in modernizing its Lindsay, Nebraska facility and has maintained strong liquidity at $202.7 million. Lindsay Corporation is also focusing on organic growth and exploring potential mergers and acquisitions to strengthen its market position.
Despite the setbacks, the company's infrastructure division and technological advancements provide a solid foundation for future growth. Notably, the company's Road Zipper System sales and leasing revenues have contributed to its growth.
Looking forward, the company anticipates more pressure on margins in the next 12 to 18 months, with stable mid-term margins expected due to a balance between depreciation and productivity.
InvestingPro Insights
Lindsay Corporation (NYSE:LNN) has recently uplifted its shareholder value proposition through an increased dividend payout, indicating a positive outlook towards its financial stability and earnings potential. With a market capitalization of $1.43 billion USD, the company shows a commitment to maintaining investor confidence. Notably, the P/E ratio stands at 17.21, suggesting that the stock is trading at a reasonable valuation relative to its earnings.
The company's revenue for the last twelve months as of Q2 2024 is reported at $644.56 million USD, with a gross profit margin of 31.74%, underscoring its ability to maintain profitability despite challenging market conditions. Moreover, Lindsay Corporation's return on assets is a robust 9.39%, which is a testament to the efficient utilization of its assets to generate earnings.
Investors may also find comfort in the company's recent price performance, with a 1-month price total return of 15.11%, reflecting a strong short-term investor sentiment. Furthermore, the company's stock is trading at 94.3% of its 52-week high, indicating that it is nearing its peak market valuation over the past year.
For those looking to delve deeper into the financial health and future prospects of Lindsay Corporation, InvestingPro offers additional insights. There are currently 7 additional InvestingPro Tips available, which can provide more nuanced guidance for your investment decisions. To access these tips and comprehensive metrics, consider subscribing to InvestingPro with the exclusive coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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