Shares of irrigation systems manufacturer Lindsay (LNN) are plunging after the company reported second quarter results that missed on the top and bottom lines. Lindsay's commentary on the farming economy is sending other stocks in the agriculture sector lower.
WHAT'S NEW: Lindsay reported a loss of (37c) on revenue of $120.6M, both lower than analysts consensus expectations. Rick Parod, CEO of Lindsay, sees headwinds for the irrigation markets due to lower commodity prices and foreign exchange rates. Parod notes that signs of stabilization are surfacing but “the market continues to reflect reductions from peak periods in farmers' investments in equipment due to the lowest projected net farm income since 2002.”
PRICE ACTION: Lindsay Corporation is declining by almost 8% in afternoon trading.
OTHERS TO WATCH: Other stocks in the agriculture sector are also lower, including Deere (DE), down over 3%, AGCO (AGCO), falling 3.4%, Titan Machinery (TITN), lower by 0.5%, Mosaic (MOS), down 3.5%, and Potash (POT) is falling by 2.4%.
